Genesis Energy will permanently retire a second unit at its Huntly thermal power plant tomorrow, due to flat demand and cheaper energy sources elsewhere.
The electricity generator and retailer said the 250 megawatt unit, which can burn gas or coal, is not needed, and there was no justification for keeping it in storage.
Gas and coal have been replaced with cheaper geothermal.
Genesis said Huntly was still an important part of its generation portfolio, and can generate up to 950 megawatts at full power.