SSE PLC (LSE:SSE) announced on Tuesday it would pump £100mln into building a pumped storage hydropower station in Scotland as it looks to ramp up the UK’s energy storage capacity, but called for clarity from the government in Westminster first.
The Coire Glas project, near Fort William, would be the first pumped hydro storage station built in the UK in 40 years and would work by moving water upwards between two reservoirs using excess energy, to later be released to spin a turbine when demand is higher.
The site has the potential capacity to store up to 1500MW of excess renewable energy when it is not needed energy, enough to power 3mln homes.
Having already received planning permission, FTSE 100-listed SSE’s funding will go towards the design of the project, which could come online by 2031.
“The £100mln investment we have announced today will help play a crucial role in further advancing the Coire Glas project towards a final investment decision in 2024,” finance director Gregor Alexander said.
Coire Glas could more than double the UK’s energy storage capacity, joining the likes of the Drax Group (LSE:DRX)-operated Crauchan station in offering to hold power long term.
Set to cost around £1.5mln, SSE confirmed it would not need a subsidy to build the station, but called on the government to lay out its energy security plans urgently, due sometime around the end of March.
“It is critically important the UK government urgently confirms its intention on exactly how they will help facilitate the deployment of such projects,” Alexander added.