By lyndamyer
In order to supporting the deployment of long-duration electricity storage projects, UK government has presented a consultation that has welcomed by SSE, the energy company responsible for the Coire Glas pumped hydro project in Scotland.
Being provided by the Department of Energy Security and Net Zero (DESNZ), this consultation announcement includes a commitment in last year’s British Energy Security Strategy to have a policy in place to enable private investment in long-duration electricity storage projects by the end of 2024.
Meanwhile as a positive step in the continuing development by SSE Renewables of the Coire Glas project at Loch Lochy in the Scottish Highlands, where exploratory works are ongoing, this act has been accepted by SSE.
Considering that SSE Renewables hopes to make a final investment decision on Coire Glas in late 2025 or early 2026, successful operation in the administrative allocation of an investable cap and floor mechanism is necessary, while allowing for main construction to commence in the second half of 2026. Also the scheduled time duration for construction process is up to seven years.
According to SSE Renewables, director of onshore Europe, Finlay McCutcheon: “Confirmation the UK government is now consulting on an adapted cap and floor mechanism for long duration electricity storage assets is welcome news for the development of pumped hydro storage technology in the UK.”
He also added: “The project teams were making steady progress on exploratory works at Coire Glas but the company’s ability to deliver a project of this scale hinges on reaching a positive final investment decision by late 2025 or early 2026 and will clearly rely on this consultation process yielding an investable cap and floor mechanism to be in place by the end of 2024.”
“Given the time taken to reach this point, much work is now needed to ensure an effective mechanism is finalised and put in place as early as possible this year to enable projects such as Coire Glas to take final investment decisions and move into construction,” McCutcheon said.
While involving site investigation works, a £100m boost for the project, with around half allocated to the project’s pre-construction refinement phase, was announced by SSE in May 2023. Coire Glas is expected to require a capital investment of more than £1.5bn.
Additionally, the investigation works are undergoing by Strabag which include building a tunnel almost 4m wide and up to 1km long, cutting into the hillside towards the proposed location of the underground powerhouse complex.
