A new hydropower revolution is under way in Scotland, which has the potential to unlock vast energy reserve capacity.
It is underpinned today with the announcement by the UK Government of a support mechanism expected to help pave the way for new energy projects such as pumped hydropower storage.
From Hollow Mountain to Red John, their names sound like Netflix spectaculars and they are blockbusters in their own right.
The giant pumped hydro sites that will put Scotland at the forefront of the key future element of energy storage are truly large in scale.
In our new three-part series we reveal how Scotland is on the cusp of a new era of hydropower energy usage.
The technology works like giant batteries by storing renewable energy and releasing it onto the grid and into homes when needed.
This includes pumped storage hydro, which stores electricity by pumping water up a reservoir, to be released later.
The company behind Red John, now known as Loch na Cathrach, at Loch Ness, is one of those creating the next massive energy powerhouse plan at Balliemeanoch at Loch Awe.
The Loch Awe project will be one the biggest in Europe and is currently being considered by the Scottish Government, SSE is testing one at Loch Lochy that would be one of the largest in the UK in the 40-year hiatus it is claimed was caused by a lack of a standard mechanism of support, and the former Red John, which could be ready by 2030, has been sold to European giant Statkraft.
Now a new framework for which the industry has been calling and which aims to assist energy storage projects is unveiled.
One insider reveals in our series a potential for up to eight new sites in Scotland.
Perth-based SSE’s Coire Glas is expected to be complete in 2033.
The Loch Lochy site in the Great Glen could deliver 30 gigawatt hours of long-duration electricity storage, enough to provide power for three million British homes for up to 24 hours.
Balliemeanoch, by Hamilton-based Intelligent Land Investments, will have 35 gigawatt hours of storage for 30 hours of power.
Loch na Cathrach is expected to offer enough to power the whole of the Highlands for nine hours solid at 450 megawatts.
Yorkshire-based Drax also aims to invest beyond its current output at the famous Hollow Mountain Cruachan Power Station which has a capacity of 440 megawatts and can power a city of 1.4 million for 16 hours, while SSE’s existing Foyers plant has a similar 400 megawatts capacity, with UK’s only two other sites in Wales.
The industry said an economic support mechanism is essential to secure the work being undertaken and future investment.
The investment support scheme announced today will "boost investor confidence and unlock billions in funding for vital projects which will help create thousands of jobs and deliver clean power as the country accelerates to net zero".
READ MORE:
- All you need to know about the new hydro power revolution
- Plans for major Scottish hydro energy plant submitted
- Energy giant hails milestone in Highland pumped storage project
Michael Shanks, Rutherglen MP and UK Energy Minister, said: "We are wasting no time in unlocking Britain’s vast renewable potential by expanding wind and solar power. But we also need to increase our ability to store this energy for when the sun isn’t shining, or the wind isn’t blowing.
"We’re reversing a legacy that has seen no new long duration storage built for 40 years - and taking steps to unleash private investment in both established and new technologies.
"With these projects storing the surplus clean, homegrown energy produced from renewable sources, we can boost our energy security by relying less on fossil fuels, protect household bills, and help deliver our key mission to make Britain a clean energy superpower."
The announcement follows a consultation held earlier this year which proposed a "cap and floor scheme to encourage investment. A cap and floor model would provide a guaranteed minimum income for developers, in return for a limit on revenues. Ofgem has agreed to act as regulator and delivery body and the scheme's first round is expected to be open to applicants next year.
Beatrice Filkin, director of major projects at Ofgem said: "We are pleased to see the government’s publication today on its plans for long duration electricity storage. Unlocking investment in this important technology is another significant step towards decarbonisation of the power system.
"We are looking forward to continuing to work closely with government as we take on the role of regulator and investment support scheme delivery body for the sector."
Alasdair Allan, MSP and acting Minister for Climate Action in Scotland, said: "Large-scale, long-duration energy storage, such as pumped hydro storage, will play a critical role in lessening our dependence on fossil fuels for electricity generation, supporting our net zero ambitions.
"It will help to maximise our significant renewable energy generating capacity by providing flexibility to the grid ensuring there is a continuous resilient and secure supply of electricity to households and businesses.
"Whilst the UK Government's proposals for a cap and floor mechanism for long-duration electricity storage are welcome, it is vital they continue to engage with industry to ensure the finer details."
Andrew MacNish Porter, head of economics and markets at Scottish Renewables, which describes itself as the voice of Scotland’s renewable energy industry, said: "We are pleased that DESNZ has confirmed a cap and floor scheme will be introduced to support investment in long-duration electricity storage, such as pumped storage hydro.
"As we deploy more renewable energy, long-duration storage is essential for ensuring clean power generated by renewables can be stored for when we need it most.
"The cap and floor scheme will bring forward investment in these vital projects so they can begin delivering benefits to consumers and providing new jobs and economic growth across Scotland.
"We are encouraged that Ofgem has been appointed as the delivery partner for the cap and floor as we recommended in our response to the UK Government’s consultation earlier this year.
"We now urge Ofgem to move swiftly in developing the details of the cap and floor scheme. With support from industry, Ofgem must act with urgency to ensure that cap and floor is implemented as soon as possible to allow shovel-ready pumped storage hydro projects in Scotland to begin construction."
Robert Bryce, director of hydro, SSE Renewables, said the announcement on a cap and floor investment framework "is a massive step forward in delivering more of the flexible homegrown energy the UK needs in our transition to net zero".
He said: "SSE’s Coire Glas has the potential to be at the forefront of delivering much needed large-scale long duration electricity storage – providing vital back up to an increasingly renewables-led system and bolstering energy security.
"The flagship project in the Scottish Highlands can shift the dial on pumped hydro storage – harnessing the power of wind and water to become Britain’s biggest natural battery, storing excess renewable energy at times of low demand and supporting a future clean electricity system with instant power.
"We now need to harness momentum from this decision and accelerate at pace with a clear timetable to implement the new framework so clean energy investors like SSE can take positive decisions to unlock investment in these nation-building projects.
"SSE will continue to work closely with Government and Ofgem as the regulator and delivery body to support a speedy implementation so we can unlock investment in Coire Glas and other large scale storage projects to secure the benefits to UK consumers and society that they bring."
Mark Wilson, chief executive of Intelligent Land Investments, said the announcement "is fantastic news for the UK's energy sector".
He said: "This policy is a game-changer that addresses a crucial need in our transition to a net zero economy. It will accelerate investment in flexible pumped storage hydro that can help deliver decarbonisation faster, and ensure power system resilience.
"This commitment signals a real step-change in approach. By mitigating investment risks while protecting consumers, it creates the ideal conditions to attract billions in private capital needed to build out this vital infrastructure. It's a smart, balanced policy that will give investors the confidence to move forward at pace, accelerating our journey towards a carbon-neutral future.
"These projects will create thousands of high-quality green jobs, particularly in Scotland, from engineering and construction to long-term operational roles, supporting local communities for years to come. This aligns perfectly with the drive towards a just transition to net-zero, ensuring economic benefits alongside environmental gains."
He said: "We're eager to collaborate with the government and Ofgem to bring these projects to fruition quickly. This is a significant step towards creating a cleaner, more secure energy future for the UK, and we are very proud to be part of the solution. By enabling greater integration of renewables, these storage projects will play a crucial role in decarbonizing our energy system and meeting our net-zero commitments."
Ian Kinnaird, Drax’s Scottish assets director, said the announcement "is a critical step forward to removing one of the key hurdles developers face in building a new generation of pumped storage hydro plants".
He said: "I would like to thank the new Government for moving at speed to do this within their first 100 days in office.
"Pumped storage stabilises the electricity system, helping to balance supply and demand through storing excess power. When Scotland’s wind turbines are generating more power than we need, Drax’s Cruachan steps in to store the renewable electricity so it doesn’t go to waste.
"We look forward to working constructively with the UK Government and other stakeholders on the next steps of this process so we can deliver in partnership a clean power system by 2030 which strengthens our energy security and delivers for consumers."
Iain Robertson, head of Statkraft Scotland, said: "We welcome the UK Government moving ahead to publish its plans, given the crucial role that long-duration energy storage (LDES) will play in balancing the grid and supporting the integration of renewables, in the years ahead.
"We’re currently considering the details of the proposals. It continues to remain vital that DESNZ holds to a clear LDES support scheme implementation timeline, enabling Statkraft and other developers to invest and build the critical infrastructure required to deliver net zero, strengthen energy security and create local job opportunities."
Tomorrow: An exclusive interview with the Lanarkshire-based entrepreneur who became one of Scotland’s newest multi-millionaires overnight when he sold a hydro project to an international power giant.
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