£500million plans to double the size of Spalding’s Power Station have been put on hold for another six months.
Intergen, which is behind the move to generate enough extra electricity to power a million homes from the station in West Marsh Road, had hoped to begin the building work in January.
But “market forces” are being blamed for the latest announcement, which says the expansion will now begin next summer.
InterGen spokesman Melissa McKerrow said: “As an independent generator we need to secure a contract to sell the extra energy to an energy supplier and we are still in conversation to do that but there is a lot of uncertainty in the market at the moment, particularly because of the Government’s electricity market reforms.
“We are waiting for the outcome of the Government reforms for us to be able to secure these long term contracts so we now hope to start building sometime next summer.”
The construction phase of the project is expected to take three years and will create up to 600 direct jobs and possibly hundreds more indirectly.
It is hoped the new bigger natural gas-fired power station would be up and running in 2015 or 2016 and is expected to create up to 40 permanent skilled jobs and some apprenticeships.
InterGen has also welcomed the appointment of South Holland and the Deepings MP John Hayes as a minister for energy and climate change.
Ms McKerrow said: “It is fantastic that Mr Hayes has now taken on this role as he really understands the requirements for this affordable power and hopefully we will get a chance to meet with him soon to talk through our issues.”