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A 600MW pumped storage hydro electric scheme has been granted planning permission by the Scottish Government.
The Coire Glas scheme, which will be developed by SSE, will be built to the north-west of Loch Lochy in the Great Glen, Scotland.
The £800 million development will have a storage capacity of 30GWh and will be the first new large scale pumped storage scheme to be developed in the UK for more than 30 years.
SSE has highlighted “a number of regulatory and commercial challenges” that face the project, including changes in the existing transmission charging regime for pumped storage.
As a result, the company has stated that a final investment decision is “unlikely before 2015 at the earliest”.
Jim Smith, managing director of SSE Renewables, said: “The consent for Coire Glas is therefore very positive, but before SSE can make a decision to invest in the project there are some major hurdles to overcome.
“SSE is now keen to engage further with both the UK and Scottish governments, as well as other relevant organisations, to develop an appropriate solution to address the commercial challenges that could enable what would be an important asset for the UK energy system to progress.”
Scottish energy minister Fergus Ewing, added: “A development like this offers a fantastic boost to the ambitions of the Scottish Government to increase the proportion of electricity generated using renewable resources because it helps deal with the variability of renewables.
“When the wind blows, excess energy can be used to pump water up into the vast store, and when the wind yield is low the station can be brought on line to provide the electricity needed.
“This is precisely the kind of development and capacity which the UK Government’s electricity market reforms must be designed to provide sufficient support.”
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