The Scottish Government says a taskforce will support the workers, businesses and communities impacted by the closure of Longannet Power Station.
It follows confirmation by the owner, Scottish Power, that the plant will close the facility in March 2016.
Energy Minister Fergus Ewing said: “Scottish Power’s decision to close Longannet in March 2016 is deeply regrettable and has far reaching consequences for Scotland.
“This is a worrying time for Longannet workers and the Scottish Government and its agencies will do everything possible to support the 230 directly employed staff who will be affected by this announcement. Our initiative for responding to redundancy situations, Partnership Action for Continuing Employment, has already offered immediate support for affected employees and will work closely with the company and workforce representatives to provide a tailored package of support.
“In addition, there will be significant impacts in the Scottish supply chain, with hundreds of indirect jobs in the coal, transport and service sectors reliant on the power station.
“Since March, when it was announced that early closure was likely, I have met twice with Scottish Power, Fife Council and workforce representatives to consider the issue and secure the best possible outcomes for those affected. We will now establish a taskforce to build on that work and develop a joint, multi-agency action plan to mitigate the impacts of the closure locally and across the supply chain.
“The taskforce will meet next week and will also include detailed discussions over the long term future of the Longannet site. I have spoken to Scottish Power today to stress the need for constructive engagement on the future of the site and on action to address the economic impacts of early closure.
“Today’s decision is ultimately an unfortunate and direct result of the UK’s discriminatory transmission charging system that penalises Scottish electricity generators in comparison to those in the south of England. In Longannet’s case the extra charges amount to £40 million per year. However, despite raising our concerns repeatedly with the Prime Minister, absolutely nothing has changed.
“Scotland’s electricity generation policy sets out the Scottish Government’s support for a balanced mix of electricity generation, including new clean thermal plant. The UK Government must work with us to create an environment that incentivises the huge potential of clean thermal technologies, particularly Carbon Capture and Storage.
“We will do all we can for Longannet and our energy industry - we need the UK Government to do the same.”
A spokesperson says Mr Ewing will make a statement to Parliament about the closure of Longannet in early course.