SSE has welcomed the announcement by the UK Government confirming its decision to finalise and implement a cap and floor investment framework to support the deployment of long-duration electricity storage projects.
The decision follows the completion of a UK Government consultation on a proposed cap and floor framework. SSE explained an appropriately designed cap and floor scheme would provide a revenue stabilisation mechanism aimed at unlocking significant private investment in long duration electricity storage projects in the UK, in the same way it has unleashed investment in electricity interconnectors.
SSE is currently progressing its flagship pumped storage hydro Coire Glas project in the Highlands which could deliver up to 30GWh of storage capacity if built – doubling the total electricity storage capacity in Britain today.
The company added that it hopes to make a final investment decision on the 1.3GW project pending successfully securing a cap and floor agreement in an appropriately designed scheme.
Robert Bryce, director of hydro at SSE Renewables, said, “Today’s announcement on a cap and floor investment framework is a massive step forward in delivering more of the flexible homegrown energy the UK needs in our transition to net zero. SSE’s Coire Glas has the potential to be at the forefront of delivering much needed large-scale long duration electricity storage – providing vital back up to an increasingly renewables-led system and bolstering energy security.
“The flagship project in the Scottish Highlands can shift the dial on pumped hydro storage – harnessing the power of wind and water to become Britain’s biggest natural battery, storing excess renewable energy at times of low demand and supporting a future clean electricity system with instant power.”
Delivery of the Coire Glas project is expected to be one of the biggest civil engineering projects in the Scottish Highlands since the 1943 Hydro Electric Development (Scotland) Act kickstarted the construction of major hydro-electric schemes across Scotland over 80 years ago. Main construction would be expected to last up to seven years, and at peak delivery the project would create up to 500 full-time construction roles.
