Pumped storage: Planning for 1.5 GW in Scotland, new alliance for 500 MW in Italy, progress on 600 MW Scottish project

In what is described as a pivotal step in enhancing the UK’s renewable energy capabilities, ILI Group announced Thursday that it had lodged a Section 36 planning application with the Scottish government for a 1.5 GW pumped hydro energy storage (PHES) project at Loch Awe, the longest freshwater loch in Scotland.

The Balliemeanoch project located in Argyll and Bute will provide 1.5 GW of power for up to 30 hours, equating to 45 GWh of energy. The scheme could potentially power 4.5 million homes and reduce the country’s carbon emissions by 200 million tonnes over the project’s lifetime, according to the project proponents.

With a planned connection date of 2031, the Balliemeanoch PHES will create a new upper reservoir in the hills above Loch Awe. When full, it will hold 58 million cubic meters of water. It scheme is expected to attract GBP 1.5 – 2 billion ($1.8-2.3 billion) in investment and create up to 1000 jobs at its peak.

Mark Wilson, CEO of ILI Group, said: “The submission of the planning application for Balliemeanoch marks another pivotal step in our commitment to enhancing the UK’s renewable energy capabilities.

“This comes on the heels of our recent sale to Statkraft for the Loch na Cathrach project (formerly known as Red John), further validating the critical role of pumped storage hydro in our energy future. Long-duration energy storage projects like Balliemeanoch and Loch na Cathrach are essential for maintaining grid stability as we increase our reliance on renewable energy sources.”

ILI Group’s project is not the only recent development in the PHES space in Scotland. Earlier this week, renewables developer Drax had appointed engineering firm Voith Hydro to move forward its plans to build a 600 MW underground project near the town of Oban, also located in the Agrill and Bute council area. 

The project will be built inside Argyll’s highest mountain Ben Cruachan, adjacent to Drax’s existing 440MW Cruachan PHES project. This will make it possible for the two facilities two to share the existing upper reservoir, which has suffcient capacity and can hold 2.4 billion gallons of water.

More than a million tonnes of rock would be excavated to create the cavern and other parts of the new power station, which is described as the UK’s first such scheme in 40 years. Exploratory ground works are currently underway at the site, including seismic surveys.

Voith Hydro has agreed to complete a Front-End Engineering and Design (FEED) study for the mechanical and electrical components of the design, which will lay the gorundwork for detailed engineering, procurement, and construction phases.

Drax’s proposals received development consent from the Scottish Government last year, but the project’s continued progression requires an updated policy and market support mechanism from the UK Government, the company argues.

Namely, no new pumped storage hydro plants have been constructed in the UK since 1984. Earlier this year, the UK Government launched a consultation on its plans to introduce a new framework which could unlock billions of pounds worth of private investment in the PHES technology.

In addition to its plans to build a new power station, Drax is currently completing an GBP 80 million upgrade to the existing Cruachan plant. The project will see the generating capacity of two of the plant’s four units increased by a combined 40 MW to raise the facility’s total generating capacity to 480 MW.

Meanwhile, in Italy, energy supplier Edison and industrial group Webuild have signed a partnership to develop 500 MW of PHES projects by 2030.

According to the agreement, the groups will upgrade Edison’s hydroelectric plants in Pescopagano in Basilicata, and Villarosa in Sicily, through construction works and create new underground reservoirs, which will be used for storing surplus renewable energy.

The companies expect to spur investments in the amount of EUR 1.2 billion ($1.3 billion) in southern Italy, also with the involvement of other private investors.

The two pumped hydro projects are part of Edison’s strategy to allow renewable energy growth in Italy. It foresees taking the Group’s installed green capacity to 5 GW by 2030, up from the current 2 GW.