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The Ferrybridge coal-fired power station in West Yorkshire is to close by March of next year.
Operator SSE has blamed rising costs and the impact of environmental legislation, claiming that the plant is forecast to lose £100m over the next five years.
Paul Smith, SSE Managing Director, and Generation, said: “This was a very difficult decision to take because of the impact on our Ferrybridge employees, their families and the community.
“It’s been known for many years that the UK would have to phase out coal as it moves towards a more sustainable energy mix. We’ve sought to protect jobs and invest in the site to keep it running for as long as we possibly could but ultimately we’ve had to make this regrettable decision today."
He said that SSE was keen to ensure that Ferrybridge's 172 staff would be redeployed.
The station has been operational since 1966 and has two units, which are nearly 50 years old.
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Radical reforms in stamp duty have helped boost the housing market, experts have said.
The Royal Institution of Chartered Surveyors (RICS) said the changes - which see stamp duty increased gradually alongside the cost of the house, rather than increasing in large 'steps' - are responsible for a predicted rise in house prices, coupled with a lack of homes to choose from.
Under a revised system unveiled and launched earlier this month, the vast majority of buyers will pay less stamp duty - though it means people buying homes at the top end of the market will pay significantly more.
House prices in the north west, south east, the West Midlands and Yorkshire and Humberside are set to shoot up by five per cent in the coming year - while property in the capital will remain level, the Royal Institution of Chartered Surveyors (RICS) has said.
It comes as further research from property analyst Hometrack found that house prices in Edinburgh, Glasgow, Southampton, Bristol and Birmingham had grown at a faster rate than London over the three months to November.
The RICS predictions state that Northern Ireland and Scotland will see overall increases of four per cent, while the east of England, the East Midlands and the north east are set to see rises of three per cent.
House prices in Wales and the south west are expected to rise by two per cent.
London is the only region due to see no overall rise at all, though property experts have warned of massive fluctuations between different areas of the capital.
German authorities have confirmed a second case of the H5N8 strain of bird flu in the eastern state of Mecklenburg-Vorpommern, with the virus found in a wild bird.
The strain is highly contagious among birds but has never been detected in humans.
In a statement agriculture minister Christian Schmidt said: "For the first time, the H5N8 virus has been confirmed in a wild bird in Mecklenburg-Vorpommern.
"With that the suspicion is strengthened that wild birds are connected with the cases in Mecklenburg-Vorpommern as well as in the Netherlands and Britain."
Bird flu has been found at a second farm in the Netherlands, according to Dutch authorities. 43,000 chickens are to be destroyed, they told Reuters.
The cull of 6,000 birds at a farm in east Yorkshire began this afternoon following an outbreak of bird flu.
A team of experts put the animals into crates before locking them in an airtight container where they were gassed. Their bodies will later be incinerated.
The cull will continue in the morning but it will be a few days before experts will know if it has been successful in stopping the spread of the disease.
The H5N8 bird flu strain found in ducks at a breeding farm in East Yorkshire is the same as the one identified in the Netherlands and Germany, the Department for Environment, Food and Rural Affairs confirmed today.
Assurances that the current bird flu outbreak will not affect the supply of turkeys for Christmas dinners around the country have been made today by UK farming experts.
Andrew Large, chief executive of the British Poultry Council, said: "The current outbreak has a 10km restriction zone and this will have no impact on the supply of turkeys for the festive period."
The poultry adviser for the National Farmers' Union, Gary Ford, added: "Farmers are working extremely hard at this time of year to prepare for the Christmas market and consumers can be reassured that buying British poultry (chickens, turkeys, ducks) is safe."