SSE to build 350 mln pound UK gas power plant with Siemens turbines

LONDON, May 25 (Reuters) -

* SSE (LSE: SSE.L - news) says to build 350 million pound ($467 million) combined cycle gas turbine (CCGT) power plant in Lincolnshire, northern England.

* The plant in Keadby will have 9000HL turbines made by Siemens (Berlin: 29783751.BE - news) , with capacity of 840 megawatts.

* Siemens (BSE: SIEMENS.BO - news) characterises the HL technology (HKSE: 1087-OL.HK - news) as the next generation of gas turbines with a high level of efficiency.

* Work on the plant is due to begin imminently (spring 2018) but SSE did not say when completion is expected.

* SSE has long planned a second power plant at Keadby, alongside an existing 735 MW CCGT plant.

* The company failed to win capacity agreements for the project in a February auction for supplies in 2021-2022.

* "Alongside wholesale market and ancillary services revenues, capacity market payments remain an important aspect of the economics of Keadby 2, and SSE intends to participate in future auctions to secure a capacity market agreement," it said on Friday.

* SSE says that 6 billion pounds has been earmarked for capital expenditure and investments over the next five years. Of that, 4 billion pounds will be spent on upgrading electricity networks in Scotland and England, plus renewable energy including offshore wind farms. ($1 = 0.7493 pounds) (Reporting by Sabina Zawadzki Editing by David Goodman)