SSE puts £100 million into Scotland pumped hydro project but new policy needed for FID

LinkedIn
Twitter
Reddit
Facebook
Email

UK utility SSE has put £100 million (US$123 million) into its Coire Glas pumped hydro project in Scotland for pre-construction activities, but said that new policy is needed for it go to final investment decision (FID).

SSE has confirmed it will allocate £100 million in capital to boost Coire Glas – a Scottish-based pumped hydro energy storage (PHES) project with the potential to be the “biggest” in 40 years.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Situated near Loch Lochy, between Fort William and Inverness, the Coire Glas project could more than double Britain’s total current electricity storage capacity and would require a capital investment of over £1.5 billion to construct.

The project would be capable of delivering 30GWh of long duration storage, though SSE said its estimated 2031 completion date is “…subject to positive development progress and prevailing policy environment”.

Announcing the £100 million funding, Gregor Alexander, finance director at SSE, was more specific: “Whilst Coire Glas doesn’t need subsidy, it does require more certainty around its revenues and it is critically important the UK government urgently confirms its intention on exactly how they will help facilitate the deployment of such projects.”

The need to change the UK’s electricity market to create the right signals for large flexibility and long-duration energy storage (LDES) assets was a talking point at the Energy Storage Summit in London last month. In one panel discussion, Robert Hull of Riverswan Energy Advisory said of the UK’s many PHES projects:

“The market signals are just not there for large flexibility assets. They are ready to go but can’t because of the way the market is designed.”

SSE hopes to make a final investment decision on Coire Glas in 2024. Excess energy would be taken from the grid to pump water 500 metres up a hill from the Loch to a upper reservoir similar in size to around 11,000 Olympic-sized swimming pools. When required, this water would then be released to power the grid when intermittent energy generation capacity, such as solar and wind, is low and demand is high.

Michael Matheson, net zero and energy secretary for the Scottish government, agreed that the market needs to change for the PHES sector to grow:

“The Scottish government has long been supportive of pumped hydro storage capacity, which we believe will play a key role in the energy transition and is a vital component of a more flexible, resilient and secure electricity supply.”

“However, it is critical that the UK government puts in place the appropriate market and regulatory arrangements to support the industry’s development as a matter of urgency. Only with a supportive policy environment can this sector realise its full potential.”

Additional reporting by George Hynes from Solar Power Portal.

Read Next

May 1, 2025
Copenhagen Infrastructure Partners (CIP) will divest a 50% ownership stake in its 500MW Coalburn 1 BESS to alternative investor AXA IM Alts.
Sponsored
May 1, 2025
Alper Peker and Dominic Multerer of Camopo explain how flexibility is the key to long-term profitability for hybrid renewables-plus-storage power plants.
May 1, 2025
Yarra Energy Foundation has secured funding to install three new community batteries in and around Melbourne, Victoria, Australia.
May 1, 2025
AEMO has revealed that, as of March 2025, the pipeline of new standalone BESS in the NEM has increased by 86% year-on-year (YoY).
Premium
April 30, 2025
Leading BESS owner-operators in the UK have signalled their opposition to the government’s cap and floor support scheme for long-duration energy storage (LDES) in an open letter. We spoke to one its signatories James Basden, founder of Zenobē, about why.

Most Popular

Email Newsletter