A Scottish energy storage company has lodged plans for a major hydro facility at a famous Scottish loch.

The move is described as a “pivotal step” as a firm based in Lanarkshire seeks permission for the development that could be worth £2 billion to the economy and help cut the country’s carbon emissions.

The Hamilton-based Intelligent Land Investments Group is today lodging a Section 36 planning application with the Scottish Government for Balliemeanoch PSH, a significant 1.5GW pumped storage hydro (PSH) project in Argyll and Bute.

Top: Loch Awe, and, below, the headpondTop: Loch Awe, and, below, the headpond (Image: ILI Group)

It is claimed the project will enhance the UK's renewable energy infrastructure, potentially powering 4.5 million homes and reducing the country’s carbon emissions by 200 million tonnes over the project’s lifetime.

With a planned connection date of 2031, Balliemeanoch PSH is “well positioned to play a crucial role in the UK's long-term energy strategy” the firm said, adding: “As the UK accelerates its transition towards ever greater reliance on renewable energy, the need for large-scale long-duration energy storage has never been more critical.

“The Balliemeanoch PSH project represents a significant step towards meeting this need and supporting the nation's climate goals.”


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The Loch Awe site would require a headpond above the main body of water, holding 58 million cubic meters of water.

PSH systems operate by pumping water to an elevated reservoir when excess electricity is available, and releasing it through turbines to generate power during periods of high demand.

How it worksHow it works (Image: ILI Group)
Pumped storage hydro is known as a "well-established, reliable technology" on the world's energy storage landscape. It has been in use for over a century, with the first plants dating back to the 1890s, and ILI said that "as of 2024, PSH accounts for over 90% of the world's grid-scale energy storage capacity".

The economic benefits include £1.5-£2 billion in construction investment, up to 1,000 construction jobs at peak, and “many more indirect jobs across Scotland and the UK”.

Capacity is 1.5GW of power for up to 30 hours, 45,000 MWh.

ILI Group has engaged AECOM, a major infrastructure consulting firm, as technical consultants for the Balliemeanoch PSH project.

Mark Wilson, chief executive of ILI Group, said: "The submission of the planning application for Balliemeanoch marks another pivotal step in our commitment to enhancing the UK's renewable energy capabilities.

"This comes on the heels of our recent sale to Statkraft for the Loch na Cathrach project (formerly known as Red John), which further validates the critical role of pumped storage hydro in our energy future. Long-duration energy storage projects like Balliemeanoch and Loch na Cathrach are essential for maintaining grid stability as we increase our reliance on renewable energy sources.

"The recent UK Government's consultation on long-duration energy storage underscores the need for a robust policy framework to support these projects. The proposed cap and floor investment framework will be crucial in overcoming investment barriers, ensuring that Scotland can deploy significant storage capacity to meet our net zero targets.

"This project not only addresses climate change but also promises significant economic benefits. It will increase the country’s energy security and has the potential to reduce household energy bills."

David Lee, AECOM’s project manager, said: "This is one of the projects at the forefront of Scotland’s energy transition and will provide the next generation of long-duration energy storage.

"Achieved through a collaboration of our own engineering and environmental specialists but also those of the client and key project stakeholders, including the local community, this milestone is an important step forward to allow the UK’s electricity grid network to meet its objective to provide a lower carbon energy supply system."

If approved, when completed in 2031, Balliemeanoch will be one of the largest pumped storage hydro projects in Europe, ILI said.

In April, it was revealed that the generating capacity of Scotland’s famous “Hollow Mountain” pumped storage hydro station in Argyll is to be ramped up in a move hailed as a major boost to UK energy security.

Energy giant Drax declared it will invest £80 million in a major refurbishment of the Cruachan site, which has been producing hydro power since the 1960s.