Some of the UK’s biggest banks have agreed to invest £100m in a fleet of eleven micro gas-fired power plants across England to offer the national grid fast-starting power options.

Lloyd’s commercial banking division, HSBC and NIBC have agreed to finance Green Frog Power’s plans for 220MW of gas-fired power capacity across sites from Plymouth to Newcastle.

The £100m loan could be stretched by a further £50m to allow Green Frog to build another 110MW worth of gas-fired power in the next few years.

Together the flurry of small gas plants represent the equivalent of one large gas-fired power unit, which could compete for contracts with National Grid to help balance the energy system as old coal-plants are shut down.

The mini-plants are capable of quickly ramping up from idle to maximum power output in just five minutes, meaning they could play a key role in managing Britain’s transition to a more flexible power system.

Lloyds provided over half of the firm’s latest funding round with £55.5m.

Jemal Omar, a director at the bank, said the growth of gas-fuelled power has steadily increased in recent years as issues surrounding fossil fuels have come under increasing scrutiny.

“Supporting businesses like Green Frog Power that are tackling this is one of the ways we’re helping Britain prosper,” he added.