Hydropower projects hit by cut in UK subsidies

The hydropower industry is at a “crossroads” with future projects threatened by a cut in UK subsidies, Scotland’s Energy Minister has said.

Paul Wheelhouse has called on the UK Government to “work closely” with him to secure funding and jobs in rural areas.

He was speaking as he visited a pumped hydro storage plant at Foyers, near Loch Ness, which can store electricity at times when renewable energy output is high but demand is low.

Mr Wheelhouse said: “Hydro generation in 2015 was at a record high level – 5,780 GWh, up 6.3% on 2014.

“But the hydro sector is at a crossroads with a number of exciting developments opening, but with some future investments, especially in small-scale hydro, at risk due to changes in subsidies brought in by the UK Government, putting jobs at risk in many rural communities.

“Pumped hydro storage – like the facility I have seen today in Foyers – is a case in point.

“This tried and tested technology can play a key role in enhancing energy security, providing local jobs and helping to integrate renewables on to the network.”