SSE Renewables plans 37 GWh pumped storage project in Scotland

SSE Renewables has announced plans for a new pumped storage hydropower scheme at Loch Fearna in Scotland’s Great Glen, in a 50:50 development joint venture with a consortium led by UK-based hydro power project development specialist Gilkes Energy.

The 1.8 GW/ 37GWh Fearna Pumped Hydro Energy Storage (PHES) project has already secured a grid connection offer totalling 1,795 MW. The project envisages the development of tunnels and a new power station connecting SSE Renewables’ existing reservoir at Loch Quoich with an upper reservoir at Loch Fearna.

A request for a scoping opinion for the project is currently before Scottish Government ministers and consultation has already commenced with consulting local communities and organisations. Project proponents expect the development to reach commercial operations in the mid-2030s, subject to reaching a final investment decision.

Earlier this year, the UK Government consulted on their decision to implement a cap and floor investment framework for long-duration electricity storage including pumped storage hydro. The outcome from the consultation is expected by the end of 2024, with the first application window for projects potentially opening in 2025.

“This Consultation recognizes both the value of Pumped Storage Hydro, but also the challenge of financing such capital intensive and long lead time projects. The proposed Cap & Floor mechanism has been used successfully to bring multiple interconnector projects to fruition, and we hope a similar mechanism will unlock the financing of a number of PHES projects,” said Carl Crompton, managing director of Gilkes Energy Limited, which will lead the Fearna PHES project development.

In addition to the Ferna project, SSE Renewables has also proposed to develop 1.5 GW Coire Glas PHES and convert its existing Sloy Power Station into a pumped storage facility, both located in Scottland.

Only a couple of weeks ago, ILI Group announced that it had lodged a Section 36 planning application with the Scottish government for a 1.5 GW PHES project at Loch Awe, the longest freshwater loch in Scotland. Meanwhile, renewable energy developer Drax has appointed engineering firm Voith Hydro to move forward its plans to build a 600 MW project near Oban in Scottland.

Many of the best locations for PHES are in the north of Scotland, where a significant increase in the generation of clean power is expected through the construction of onshore and offshore wind farms. However, no new pumped hydro storage plants have been constructed in the UK since 1984.