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Peter A Walker

Six Scottish hydro projects 'could create up to 14,800 UK jobs'

Six projects currently under development in Scotland could more than double the UK’s pumped storage hydro capacity to 7.7GW, create almost 15,000 jobs and generate up to £5.8bn for the UK economy by 2035.

That's according to a new report by Scottish Renewables and BiGGAR Economics.

The current projects, if constructed, would add 4.9GW to the UK’s existing capacity of 2.8GW to go over halfway towards achieving the 15GW of capacity that is expected to be needed by 2050.

Scottish Renewables is calling on the UK Government to urgently deliver the measures it has promised to enable investment in large-scale, long-duration energy storage, so developers can deliver the existing pipeline of ‘shovel ready’ pumped storage hydro projects.

No pumped storage hydro facility has been commissioned since 1984.

Pumped storage hydro is similar to a giant battery as it can store energy and then release it when needed. Each facility uses two water reservoirs at different elevations and power is generated when water moves down from one to the other passing through a turbine. When demand for electricity is low, water is pumped back up to the upper reservoir where it is stored for future use.

To meet the UK Government’s net zero targets, substantial increases in clean energy are required. However, since many technologies, such as offshore wind, are variable in their output, storage assets will be essential to support demands placed on the electricity network.

Many of the best locations for pumped storage hydro are in the north of Scotland, where there are plans for a significant increase in the generation of clean power with the construction of onshore and offshore wind farms.

Many more projects than the six studied for the report will need to be delivered in order to reach the 15GW of storage capacity that the UK Government expects to be the minimum amount required to meet the needs of the energy system in 2050.

The report also noted that once these additional projects are in development, pumped storage hydro will generate up to £14.8bn for the UK economy and create up to 9,400 jobs annually.

The six projects studied in the report are the Cruachan Expansion and Balliemeanoch, both in Argyll and Bute, Corrievarkie in Perth and Kinross, Glenmuckloch in Dumfries and Galloway, and Red John, Coire Glas, in the Scottish Highlands.

Andrew MacNish Porter, policy manager for economics and markets at Scottish Renewables, said: “From this report we know that pumped hydro storage is uniquely placed to deliver socio-economic benefits to communities across the UK and, as an established and proven technology, it will play a crucial role in achieving the UK Government’s net zero ambitions and delivering energy security for consumers.

“However, an investment framework is needed to secure the massive capital investment required for these projects.

“We therefore urgently need the UK Government to clarify its support for pumped storage hydro and deliver the required policy support to unlock the huge value these projects promise to deliver.”

The report was put together by independent economic consultancy Biggar Economics and jointly funded by Buccleuch, Drax, Foresight Group, Intelligent Land Investments Group and SSE Renewables.

Finlay McCutcheon, director of onshore renewables in Europe at SSE Renewables, said: “We stand ready to invest in this vital technology and call on the UK Government to urgently confirm its intention for a market investment framework to facilitate the deployment of pumped storage hydro projects so that the sector can reach its vast potential.”

Ian Kinnaird, director of Scottish assets at Drax, added: “Building a new generation of pumped storage hydro plants is vital to unlocking Scotland’s wind power potential and creating highly-skilled green jobs for our communities.

“That is why it is so important that the UK Government progresses its plans to introduce a new policy framework which will encourage and support private investment in these projects.

“With the right support in place, Drax stands ready to invest more than £500m in expanding our iconic Cruachan plant on the shores of Loch Awe.”

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