DRAX has won formal approval from the Scottish Government for its plan to build a £500 million underground pumped storage hydro plant in Argyll.
The power giant declared the development consent, provided by ministers through Section 36 of the Electricity Act 1989, was a “major milestone” in its quest to develop the first new plant of its kind in a generation.
Its long-standing plan would see a 600-megawatt hydro plant built next to Drax’s existing Cruachan "Hollow Mountain" facility in Argyll, which the company acquired from ScottishPower as part of a £702m deal for a portfolio of power generation assets in 2019.
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But it said a final investment decision had still to be taken, with the development ultimately hinging on the UK Government providing an “updated financial stabilisation mechanism”. The company said the absence of a framework for large-scale, long-duration technologies has meant no new plants have been constructed in the UK since 1984, despite the key role they can play in decarbonising the energy system.
Will Gardiner, chief executive of Drax Group, said: “This is a major milestone in Drax’s plans to build Britain’s first new pumped storage hydro plant in a generation.
“These plants play a critical role in stabilising the electricity system, helping to balance supply and demand through storing excess power from the national grid. When Scotland’s wind turbines are generating more power than we need, Cruachan steps in to store the renewable electricity so it doesn’t go to waste.
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“With the right support from the UK Government, Drax will invest c.£500m to more than double Cruachan’s generating capacity and support almost 1,000 jobs across the supply chain during construction.”
The existing Cruachan site, one of only four pumped storage power stations in the UK, was built in the 1960s in the hollowed-out mountain Ben Cruachan.
Drax says the facility works like an enormous rechargeable battery by managing water resources between a reservoir in the Argyll hills and Loch Awe, 396 metres below.
Water is pumped using reversible turbines from Loch Awe to fill the upper reservoir when demand for electricity is low. When demand rises, the stored water can be released through the turbines to quickly generate power.
First Minister Humza Yousaf, who visited Cruachan today, said: “Hydro power has real potential to play a greater role in our transition to net zero, and to help ensure a resilient and secure electricity supply across the UK.
"The expansion of Cruachan will help to strengthen our energy security by providing much needed resilience in the system, supporting hundreds of jobs, and providing a real boost to the Scottish economy.
“However, we know that there remain a number of challenges in developing new hydro power projects in Scotland. The Scottish Government will continue to urge the UK Government to provide an appropriate market mechanism for hydro power and other long duration energy storage technologies, to ensure that the potential for hydro power is fully realised.”
The portfolio of assets Drax acquired from ScottishPower in 2019 also included the Galloway and Lanark hydro schemes.
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