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Released April 14, 2025 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The green light has been given for the largest pumped-storage hydro (PSH) project in the U.K..

With an estimated budget of US$2.5 billion, the Earba PSH project in the Scottish Highlands will have an installed capacity of 1.8 gigawatts (GW) and a storage capacity of 40 gigawatt-hours (GWh). It will be capable of delivering 22 hours of storage at full power. The project, which received Section 36 planning consent from the Scottish government's Energy Consents Unit, is being developed by Gilkes Energy (Kendall, England) which called it a "groundbreaking achievement in the field of Long Duration Energy Storage (LDES)".

The company highlighted the "excellent site characteristics" for the project, which includes the geology and topography around the existing lochs, which it said are "natural 'bowl' shapes" that allow straightforward modification to form upper and lower reservoirs. It is also close to the National Grid transmission network and has good existing road access. Industrial Info is tracking 12 major U.K. pumped-storage hydro-related projects worth more than US$15 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

Earba PSH project director David Tomb said: "This ambitious project will be the largest of its kind in the U.K., with an installed capacity of 1,800 megawatts (MW) and 40,000 megawatt-hours (MWh) of storage. The sheer scale of Earba makes it a landmark project with national significance. To put this into perspective, it would require the construction of 400 typical lithium-ion battery storage systems (each with 50 MW capacity and 100 MWh of storage) to match the equivalent storage capacity of Earba. That is a staggering amount, especially when you consider the footprint of these battery sites. With 22 hours of energy storage, Earba will provide significant system benefits by reducing wind curtailment payments and cutting down on gas generation, resulting in lower emissions and a cleaner grid."

He added: "It's been over 50 years since the last pumped-storage hydro project broke ground, so it's essential that we work closely with suppliers to develop the supply chain capacity needed for such a transformative project."

Last month, the U.K. government confirmed that it was going ahead with introducing a "cap and floor" investment regime for long duration energy storage (LDES) projects. The first applications will be accepted later this month and electricity and gas market regulator Ofgem stated that the capacity range for has been set at between 2.7 GW and 7.7 GW out to 2035. Under the cap-and-floor model, when revenues fall below a set minimum (the floor), consumers top up the difference. If revenues go above a set maximum (the cap), the extra money goes back to consumers in the form of reduced bills. The government committed at the start of the year to removing the barriers to the rapid expansion of the LDES sector in the U.K..

Ofgem's recent cap-and-floor announcement was welcomed by industry group RenewableUK. Senior Policy Analyst Yonna Vitanova said: "The introduction of a cap and floor mechanism for LDES is a critical means of catalysing investment in an underdeveloped area and supporting the U.K.'s ambitions for a clean power system by 2030. No new LDES technology has reached commercial deployment in the U.K. in the last 40 years, so today's confirmation of the design of the cap and floor scheme brings welcome clarity to industry and investors alike. The indicative capacity range of between 2.7 and 7.7 GW up to 2035 is a welcome ambition, whilst the accelerated timeline to award projects with a 25-year cap and floor regime in Q2 2026 brings much needed certainty. The LDES cap and floor approach acknowledges the unique risks LDES projects are exposed to when compared to interconnectors, and lays out the building blocks to unlock much needed deployment of electricity storage over the next decade."

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).

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