SSE pleads for certainty on Coire Glas hydroelectric scheme
SSE is spending £100 million to move forward with a hydroelectric storage scheme in the Highlands.
That will include tunnelling into a hillside at the site of the Coire Glas project, at Loch Lochy in the Great Glen, to assess the geological conditions.
The technology works with two reservoirs at different heights. During periods of low demand electricity is used to pump water from the lower area to the upper one. This stored water can then be released to generate power when it is needed. The output is expected to be capable of providing power to about 3 million homes.
SSE, a FTSE 100 energy infrastructure and networks group, used to own the Cruachan pumped storage facility in Scotland but sold it to Drax at the end of 2018. The company estimates that Coire Glas would be one of the biggest engineering projects in the Highlands this century with up to 500 construction workers at its peak.
A final investment decision is expected next year and SSE is still looking for policy clarity from the UK government about how pumped storage can generate revenue from supporting the grid. If that is forthcoming SSE believes that the scheme could be operational in 2031.
Gregor Alexander, SSE’s finance director, confirmed that the project, forecast to cost £1.5 billion, did not need government subsidies but there had to be “certainty” from Westminster. He said that the £100 million investment was a “significant down payment” to keep the development moving forward but warned that a positive final decision would depend “on the prevailing policy environment”.
