SIMEC welcomes boost for Kinlochleven hydro scheme

SIMEC, part of Sanjeev Gupta’s GFG Alliance which bought the aluminium smelter in Fort William, says an amendment to Scottish legislation will unlock a significant investment programme to upgrade its Kinlochleven hydro power station, writes Mark Entwistle.

SIMEC is one of the first power generation businesses to commit to new investment following the amendment to the Renewable Obligation order. The ruling amends the legislation which will allow the Kinlochleven plant to produce more than the 19.5 megawatts (MW) of power for which it is accredited.

When the Kinlochleven hydro station entered the Renewable Obligation in 2002, work was undertaken to restrict the station output so that it could not generate more than 19.5 MW in order to comply with Renewable Order legislation in force at that time.

The Scottish Renewable Obligation amendment means the power station can now be upgraded so its maximum capacity increases from 19.5 MW to up to 27.5 MW. But as the company only receives support for generation up to 19.5 MW, the extra renewable energy unlocked by the upgrade will be produced without subsidy and therefore at no extra cost to the consumer.

GFG Alliance says the upgrade is essential to its vision to further develop the 114,000 acres of Lochaber estate lands that came with the purchase of the smelter for the benefit of the regional economy and communities.

Alongside the Glenshero wind farm project and river hydro schemes, the enhancement and expansion of existing hydro power production will deliver the additional low-carbon power GFG needs to support its own industrial growth in the Highlands and says it will also support the wider economy and new local businesses.

The upgrade works will include substantial refurbishments to the infrastructure that collects and controls water flows in-between the Blackwater reservoir and the powerhouse, alongside modifications to the turbines themselves.

Jay Hambro, chief executive of SIMEC Energy and chief investment officer of the GFG Alliance, said the change means it will be possible to generate over 40 per cent more clean green power at no cost to the consumer.

‘The development of Kinlochleven and the investment that goes along with it will unlock additional local jobs and benefits to the local economy during the construction phase and secure more economic growth by powering local industries going forward,’ he said.

‘We applaud Scottish Government’s amendment to the Renewables Obligation and we are grateful to the First Minister and to Minister for Energy Paul Wheelhouse and his team for their work and vision in making this a reality.’