Powergen has lost its bid to build a £120m gas-fired power station on the site of the former British Steel works at Gartcosh, in North Lanarkshire.
Scottish Secretary Donald Dewar has thrown out the bid following a public inquiry and local opposition.
Opponents of the plant, which included Scottish Power, the Scottish TUC and North Lanarkshire Council, claimed it would lead to the closure of Scottish Power’s Cockenzie coal-fired power station in East Lothian.
Powergen’s new plant would have created only 30 full-time jobs as compared with the potential loss of 240 jobs at Cockenzie.
A Powergen spokesman said: ‘Obviously we are disappointed. We think it would have provided much needed competition in the Scottish generating market.’
Since the plant was rejected on planning grounds, not under the Government’s moratorium on new gas-fired stations, the plans could be resubmitted after the new Scottish Parliament becomes responsible for planning consents in July.