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Scottish Renewables is calling for extra support to unlock £1 billion of investment in hydroelectric pumped storage schemes.
Two planned pumped storage projects in Scotland could add 1.2GW of flexible capacity. However, the trade body highlighted investor concerns they will not get a sufficient return in the market.
Pumped storage acts as a utility-scale battery, helping to balance supply and demand and reduce the need for costly network upgrades. This becomes “increasingly important” as more intermittent sources of generation such as wind come online, said Scottish Renewables.
Operators can earn money through arbitrage between peak and off-peak prices and providing balancing services to National Grid. They will also be eligible to bid for capacity contracts in the auctions to be introduced in December.
However, these sources of income are not forecast to be enough to support investment and do not reward the “inherent benefits” of storage, the industry body argued.
As industry representatives gathered for a Hydro Conference in Perth, Scottish Renewables urged the UK and Scottish governments to set up a joint panel to overcome these obstacles.
Joss Blamire, senior policy manager at Scottish Renewables, said: “A new generation of pumped storage has the potential to play a hugely important role in helping deliver a secure energy system for the UK, while also providing a number of other environmental and economic benefits.
“This tried and tested energy storage technology can also help facilitate our transition to a low-carbon future, ensuring that renewable energy can be stored when it is generated and used as required.
“The case for new pumped storage has never been stronger than it is today. That is why the renewables industry is calling on UK and Scottish Governments to establish an inter-governmental panel to consider how this technology should be supported for the benefit of our energy security, the environment and the consumer.”
The UK has 3GW of pumped storage in operation, including two plants worth 740MW in Scotland. A 600MW scheme at Coire Glas, near Invergarry, got planning permission in December 2013. Plans have also been submitted to expand the existing Cruachan plant by up to 600MW.
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