ScottishPower is spending £8 billion over the next five years on renewables and networks but will not spend a penny on a new thermal power station north of the border.
Punitive connection charges made such investment completely unviable, said Hugh Finlay, the company’s generation director.
He was responding to criticism by economist Tony Mackay over the likely closure of Longannet Power Station.
Longannet is to close next year with the loss of up to 1,000 jobs as a result of owners ScottishPower’s failure to win a £15 million contract from the National Grid.
A meeting will be held today between Fife Council, Scottish Government minister Fergus Ewing and ScottishPower to try to mitigate the economic impact of the closure.
Mr Finlay said: “We need to examine all of the future considerations for Longannet and the team based there, and to do this we will be working closely with Fife Council, the Scottish Government and the trade unions.”
Changes in environmental legislation and government energy policy had made it clear that Longannet had a limited lifespan, he considered.
“The economist Tony Mackay is wrong to suggest that there has been a lack of willingness to plan for other thermal power stations to replace it,” he said.
“Financial penalties for higher emitting power stations, particularly coal-fired ones like Longannet, have been accelerating the pace of change in the industry.
“A stubborn refusal to stop punitive locational charges for generating thermal power is likely to be the final nail in the coffin.”
He believed the charges will mean that Longannet will close before its time and discourage any energy company from investing in new thermal power stations in Scotland.
“The £40m annual grid connection charge levied by National Grid for Longannet means the economics of the station no longer add up,” he said.
“If Longannet was located in the south of England, it would actually receive up to £4 million a year for being connected.”
He added: “Unless sensible changes are implemented to transmission charging, it is unlikely that a new power station will ever be built by anyone.”
The company is investing in Scotland’s energy infrastructure, spending around £8bn over the next five years, mainly in renewables and networks.