Controversial plans to build a new coal-fired power station at Kingsnorth in Kent have been put on hold for up to three years, energy firm E.On has said.
It said it would be delayed until about 2016 because electricity demand had fallen during the global recession.
The site has been a high-profile target for environmental protests by groups that argue a new plant would increase carbon emissions and climate change.
Greenpeace said E.On’s decision was “good news for the climate”.
The plant, which has yet to receive government permission, would be the UK’s first coal-fired power station to be built for 30 years.
Andy Atkins, executive director of environmental campaign group Friends of the Earth, said the station would have “seriously undermined the UK’s credibility on climate change."
He added: “The government must now show real leadership and say no to all new coal plants which aren’t fitted with 100% carbon capture and storage from day one.”
But a government statement has suggested E.On still plans to build the new unit.
The Department of Energy and Climate Change said: "E.On's decision to delay their proposed project is a response to the global economic situation and they remain committed to developing clean coal."
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