Plutus PowerGen said it has been informed that Bristol Council has turned down a planning permission application for a 20MW flexible stand-by power generation site in Bristol.
It added that this was in spite of Bristol Council's own professional officers' clear recommendations for approval.
"The Board is now consulting with its advisers to determine over the issue of an appeal," the company said in a statement.
"Nonetheless, the Company has many other sites in its pipeline. 80MW of further planning permission applications are in progress, and a further 60MW are in pre-planning."