The company estimates that the facility will generate a loss of £100m over the next five years.
SSE generation managing director Paul Smith said: "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."
The 172 workers, who will be affected by the closure of the plant, would possibly be moved to the company’s other facilities, SSE said.
Independent conservation organization, WWF generation specialist Rebecca Williams said: "Ferrybridge C, like other coal power stations, cannot stay open if we are to meet the UK’s carbon emission targets which are essential in tackling climate change.
"David Cameron has already pledged to phase out unabated coal for power generation."
Meanwhile, SSE is planning to resume operations at 735MW Keadby gas-fired power station in Lincolnshire by the end of October, and commission £300m Ferrybridge Multifuel 1 (FM1) project at the Ferrybridge site by the end of this year.
Some of the Ferrybridge staff are planned to be redeployed at the Keadby station.
Image: Ferrybridge C station in West Yorkshire. Photo: courtesy of SSE.
