The Press and Journal (Aberdeen and Aberdeenshire)
Hydro scheme put on hold over Westminster delay
Plans for an £800million power station in the Highlands remainonhold as the UK Government delays decisions on energy policy in the wake of Brexit, it was claimed.
Energy giant SSE has said it cannot make a final investment decision on the planned 600mw pumpedstorage hydro scheme at Coire Glas, above Loch Lochy, until Westminster makes a funding mechanism available.
The firm is seeking to strike a “cap and floor” funding arrangement which regulates how much money a developer can earn. The desired payment scheme is similar that proposed for funding energy interconnectors.
UKinvolvement in a major North Sea “supergrid” is also under question as the UK seeks to distance itself from major European infrastructure projects.
SNP energy spokesman Callum McCaig s aid pumped storage schemes like Coire Glas had “an important role to play in the energy mix, particularly with the increasing deployment of renewable technologies”.
He added: “In the four monthssince theEuropean Union referendum we have not heard anything from the UK Government as to how they will address energy policy.
“It is clear the inaction f rom Westminster is putting investment deci- sions like SSE’s under question. The best solution for security of supply, cost to the consumer, and carbon reduction would be for the UK to stay part of the EU’s energy union, but with Theresa May’s government being deathly silent on the issue, it’s impossible to tell if this is even a priority for them.”
The proposed SSE scheme would be the first new large-scale pumpedstorage project built in the UK for more than 30 years and would dwarf Scotland’s two existing schemes at Cruchan and Foyers.
SSE has said the proposed supergrid connecting nine European countries across the North Sea would also “help strengthen the business case” for Coire Glas.