SSE is investing £100m into what could be Britain’s biggest pumped hydro storage scheme in 40 years.
Located on the shores of Loch Lochy, between Fort William and Inverness, the Coire Glas project is expected to require a capital investment of over £1.5bn to construct.
The project, which received planning consent from the Scottish Government in 2020, would also more than double Britain’s total current electricity storage capacity.
SSE hopes to make a final investment decision on Coire Glas in 2024, subject to development progress and the prevailing policy environment - and to fully construct and commission the scheme by 2031.
Once complete, Coire Glas would be capable of delivering 30GWh of long duration storage.
The scheme would take excess energy from the grid and use it to pump water 500 meters up a hill from Loch Lochy to an upper reservoir equivalent to nearly 11,000 Olympic-sized swimming pools, where it would be stored before being released to power the grid when wind output is low and customer demand is high.
At the flick of a switch, Coire Glas would begin generating enough renewable energy to be able to power three million homes in just under five minutes. The project could provide this level of flexible power for up to 24 hours non-stop.
It is expected to be one of the biggest engineering projects in the Scottish Highlands since the 1943 Hydro Electric Development (Scotland) Act kickstarted the construction of hydro-electric schemes across Scotland 80 years ago.
At peak delivery, the project would create up to 500 full-time construction roles.
The announcement is being made today as part of a visit by Energy and Net Zero Secretary Michael Matheson to SSE’s Pitlochry dam and hydro station.
"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," he commented.
"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."
SSE finance director Gregor Alexander said: "Coire Glas will be one of the most ambitious energy infrastructure projects the UK has ever seen and is a key component of SSE’s commitment to helping lead Scotland and the UKs’ energy transition.
"If delivered around the turn of the decade, Coire Glas could play a crucial role in getting the UK to net zero.
"Our investment commitment today also signals a significant down-payment by SSE to keep this critical project moving forwards - and our ability to reach a positive final investment decision will clearly depend on the prevailing policy environment for long duration electricity storage and long-term infrastructure projects more broadly.
"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 next phase of project design and refinement, construction planning and procurement will progress through 2023 and into early 2024.
Around half of the £100m development investment will now be allocated to the pre-construction refinement phase, including site investigation works which will complete later this year.
These include the construction of an exploratory tunnel to enable the project team to assess the geological conditions that will be encountered in constructing the scheme.
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