DANVILLE, Va. (AP) - Developers have scrapped plans to build a natural-gas fired power plant in southside Virginia, a project local officials had hoped could boost the area's economy.

Southern Power recently told state and local officials it no longer plans to move forward with the project, which was in an early stage.

The subsidiary of Atlanta-based energy giant Southern Company announced plans for the plant in 2016. It said then that it had signed a purchase agreement for 300 acres of land at the Berry Hill Industrial Park in Pittsylvania County.

In a letter to local officials explaining its decision, the company cited "current market conditions" in regional transmission organization PJM Interconnection, which coordinates wholesale electricity in 13 states, including Virginia.

The news was first reported by the Register & Bee.