On the evening of 26th February 2025, the British Hydropower Association convened a round table discussion with PSH developers, contractors and leaders in Scottish education and infrastructure, to highlight the opportunities and challenges of a new generation of Pumped Storage Hydropower (PSH). The evening was skilfully chaired by Michael Matheson MSP and co-hosted by representatives from Highlands and Islands Enterprise, Prosper, Aberdeen Renewable Energy Group and Scottish Renewables.
Raising awareness of the sheer scale of projects and how early enabling works' on nearby infrastructure will be crucial to a swift commissioning date. There are eight potential new pumped storage projects in Scotland, four of which are in the Great Glen with construction due to start in 2026 and power generation as early as 2032.
The audience received a presentation from Mike Seaton at SSE Renewables on their £2bn Coire Glas project on the shores of Loch Lochy. At 1.4GW and 30GWh, it is one of the largest proposed PSH projects in the UK capable of powering 3 million homes. Coire Glas received planning consent in 2020 and has already dug a 1km exploratory tunnel - with the customary prayers offered to St Barbara, the patron saint of tunnelling. The final investment decision is expected in 2026 depending on the level of support from Ofgem's cap and floor scheme and it could be generating power by 2033.
Michael Matheson MSP, Falkirk West constituency, commented:
"I was delighted to host this roundtable meeting, bringing together industry leaders, MSPs and more to begin crucial discussions on the future of hydropower in Scotland."
"Working alongside the British Hydropower Association, it is my ambition that frank and open engagement can take place between industry, developers, and communities to ensure that Scotland maximises it's PSH potential while delivering real improvements for communities and driving towards a sustainable economy and energy mix."
"I firmly believe that this is only the beginning of these discussions, and there is a long road to travel. However, the first steps have been made by getting everyone round the table, and I look forward to continuing these discussions with the BHA, and other stakeholders, as we make progress."
The Opportunity -New PSH projects could add a combined 10GW and 200GWh to the UK grid which equates to around 25% of UK daily energy needs. The UK's annual electricity demand currently stands at 320TWh but is forecast to double by 2050. Electrifying transport, heating and heavy industry all drive this growth and while wind and solar are key renewables, their intermittency requires energy storage so investment in pumped hydropower is justified for decades to come.
Accommodation -At the height of the build phase a project could have over 500 workers on site, so developers are keen to use a local workforce where possible. Jenni Minto MSP for Argyll and Bute, highlighted the opportunity for new local housing to be built for first use by workers before a hand over to the local authority. This arrangement has historically taken place with large construction projects in remote locations with examples including the Stevenson Lighthouses in the 19th Century and the first hydropower projects from the 1930s including Sloy, Tummel Garry and Glen Affic. Developers including ILI Group, SSE, Statkraft and Glen Earrach Energy expressed support for the idea whilst recognising the need for housing numbers, locations and designs to be appropriate for a legacy benefit.
Education and Skills -Talks are ongoing with Universities and Colleges in the Highland area to understand how to scale up training for welding and metal fabrication, working with concrete, heavy machinery and electro-mechanical trades. Carrie Higgins from University of Highlands and Islands, Graeme Jackson from Colleges Scotland and Kenny MacInnes from Forth College were in attendance, noting their organisations were ready to support the scale up of courses, but expressed concern over demands for similar skills from the transport, offshore wind and housing sectors.
A recent report published by UHI and Statkraft highlights that apprenticeship course start data in the Highland Council Area shows a 52% increase in energy-relevant frameworks' over the period 2020-2023. Building construction, electrical installation and engineering courses all show the strongest growth. Energy relevant courses are around 24% of the total course enrolments across Highland colleges so whilst encouraging, these headlines already highlight a competitive labour market.
Transport Infrastructure- The roundtable was attended by Sinclair Browne, CEO of the Port of Inverness and John Paterson, CEO of Scottish Canals. These assets are crucial to the success of at least four proposed PSH schemes. Andrew Troup, Development Director at Statera Energy, the firm behind the proposed Loch Kemp, was keen to see investment into the Caledonian Canal so PSH projects can avoid using the local road network for construction traffic and abnormal loads. There will also be a need to minimise the impact on daytime leisure boats when looking at the scope of upgrade works to this iconic 200-year-old transport route. Collaboration and investment from the public and private sector will enable the upgrades required at minimal cost to any one entity.
Concluding remarks - Project developers are keen to collaborate with the Scottish Government and local authorities to coordinate a roadmap for successful delivery and to navigate the inevitable challenges. With these renewable power stations set to last well over 100 years, they would bring multi-generational benefits to the local economy. The goal is to ensure long-lasting benefits for Scotland and the UK as we transition to a net-zero power grid.
