Big Boost for Hydropower in the U.K.

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Three large pumped-storage hydroelectric projects in Scotland have taken an important step forward following their inclusion on a list of projects suitable for U.K. government funding support.

First Major Hydro Projects in 40 Years

The U.K.'s first major hydropower projects in 40 years have moved closer to becoming a reality after the country's energy regulator Ofgem selected three large-scale Scottish projects for potential funding support. The projects are Loch Kemp, Coire Glas and Earba with a combined generating capacity of 3,600 megawatts (MW), enough to power millions of homes. According to Industrial Data Resources data, there are  20 hydropower projects in the U.K. worth a potential US$15.6 billion in investment. 

Energy Storage on the Rise

Long duration electricity storage (LDES) projects are on the rise in the U.K., with Ofgem  claiming they will help balance the supply and demand of electricity on the grid, "especially when using renewable energy sources like wind and solar, which can be unpredictable." The three Scottish projects were among 16 projects cleared for possible funding alongside others using compressed air energy storage (CAES), and battery energy storage systems (BESS) using lithium and vanadium redox flow batteries (VRFB). Last year, the government confirmed that it was going ahead with introducing a "cap and floor" investment regime for LDES projects. Ofgem has stated that the capacity range to be supported has been set at between 2.7 GW and 7.7 GW out to 2035. Funding winners will be announced later this year. 

U.K. Energy Minister Michael Shanks said: "Forty years after the country's last pumped storage facility, this government is getting Britain building again. The lesson from the conflict in Iran is clear: Britain cannot afford to remain at the mercy of volatile fossil fuel markets and leave families exposed to the next price shock. That is why we are further and faster in delivering the clean power mission by rolling out a new generation of pumped hydro storage and state-of-the-art batteries - making more of the clean, homegrown power we already produce, cutting waste, lowering bills and strengthening our energy security."

The Scottish Projects

The Earba pumped-storage hydro (PSH) project in the Scottish Highlands will have an installed capacity of 1.8 GW and a storage capacity of 40 gigawatt-hours (GWh). It will be capable of delivering 22 hours of storage at full power and is being developed by Gilkes Energy. It will be the largest hydropower project in the country's history. Coire Glas is a proposed 1.3-GW PSH project located on the shores of Loch Lochy in the Scottish Highlands. Developed by SSE Renewables, it will provide up to 45 gigawatt-hours of long duration electricity storage. The 660-MW Lock Kemp project will draw water from Scotland's most famous lake, Loch Ness, to provide up to 15 hours of storage at full power. All three projects will come online in the early 2030s. 

Positive Reaction 

David Tomb, project director of the Earba PSH project, said Ofgem's decision "is a major step forward for the Earba project. We have always been confident in the project's strong fundamentals and that a cap-and-floor contract in principle would be secured from Ofgem. This milestone should provide significant confidence to the supply chain in the long-term viability and momentum of the Earba project."

"Coire Glas is one of the U.K.'s most advanced pumped storage hydro projects, and its potential delivery would support a cleaner, more secure and more affordable energy system," SSE stated. "SSE will now assess the outcome of the LDES project assessment and will engage fully with Ofgem to work through a significant number of points of detail, which will need to be resolved for the project to progress."

Key Takeaways

• Three large pumped hydroelectric projects in Scotland are cleared for potential government funding.
• Loch Kemp, Coire Glas and Earba will have a combined generating capacity of 3,600 megawatts (MW). 
• Industrial Info Resources is tracking 20 hydropower projects in the U.K. worth a potential US$15.6 billion in investment. 

About Industrial Info Resources
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, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).