THE future of the £800million Carrington Power Station was called into doubt after it failed to secure investment – but a much-needed deadline extension offers hope.

Carlton Power’s Trafford gas-fired power plant, in Manchester Road, was in danger of forfeiting its multi-million government funding agreement after failing to hold up their side of the deal.

The power station, which was set to meet the electricity demands of more than one million homes, secured an annual £30m government contribution for the next 15 years.

This was through the government's capacity market scheme, which was introduced to promote investment in the electricity sector and ensure the country has enough power during times of high demand.

The impending closure of coal-fired power plants in Britain by 2025 has raised concerns about power supply shortages across the country.

Carrington Power Station is the only new major gas-fired power plant to be offered the capacity market contract .

However, Carlton Power was told it had to secure separate financial backing by this summer – but failed to meet this condition.

Energy secretary Amber Rudd agreed to give the plant more time to find investors and now has until December 19 to secure this funding or face termination.

A spokesperson for Carlton Power said: “Carlton Power confirms that the Trafford Combined Cycle Gas Turbine (CCGT) project has not achieved the Financial Commitment Milestone by the initial deadline set out in the Capacity Market Rules and has received a Termination Notice from the Delivery Body advising that the Capacity Agreements secured in the 2014 Capacity auction will terminate on September 26 2016.

“However, the Secretary of State has agreed that, in accordance with the Capacity Market Rules, the termination date has been extended to December 19 2016 to enable the project to achieve financial close with its investors. DECC remains very supportive of the Trafford project.”

Carrington Power received planning permission in 2008 for the construction of the plant at the former Carrington coal-fired power station site. Energy bosses boasted it would be one of the most efficient power stations in the UK. Once operational, it will generate more than three times the amount of electricity than the former coal plant but will occupy only half the land.