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Energy firm E.on has postponed plans to build a new coal power station in Kent.
The company's plans to build the power station in Kingsnorth have been put on hold because people are using less electricity due to the recession.
An E.on spokesperson confirmed the decision and said the plans are expected to be delayed until 2016.
However, Environmental activist network Greenpeace said it is "extremely good news for the climate".
Greenpeace Executive Director John Sauven said: "The case for new coal is crumbling, with even E.ON now accepting it's not currently economic to build new plants. The huge diverse coalition of people who have campaigned against Kingsnorth because of the threat it posed to the climate should take heart that emissions from new coal are now even less likely in Britain."
(CD/GK)
