Fulcrum Power has applied to local authorities to develop a 20 MW Short Term Operating Reserve (STOR) diesel power station in the English city of Plymouth.
The project, which the company says will cost "several million pounds", would be built on the site of a former Toshiba plant, reports the BBC. In its application to Plymouth City Council, Fulcrum said the 52 generators will consume more than 1.1m litres of diesel a year, or about one tanker a week.
Fulcrum said in its application that fluctuations in supply are "predicted to become greater with the advent of unpredictable renewable generation such as solar and wind".
It added: "The need for reserve will also increase as old oil and coal stations close over the coming years and support the increase in renewable energy and the retirement of old oil and coal fired power stations".
Fulcrum's application could be considered by Plymouth City Council next month.
UK transmission system operator National Grid has predicted the requirement for STOR will double over the next eight years.
A spokesman for National Grid said: "The main factor about why we are seeing an increase in STOR contracts is to help balance the grid system with increased amounts of wind power which, by its nature, is intermittent.
"Also, for quite technical reasons, when the larger nuclear power stations come on line in the next 10 years, we also need this flexible response to provide our safety margins."