Drax Group receives development consent for £500 million Cruachan pumped storage expansion
25 July 2023
Drax Group has been granted development consent by the Scottish Government for its project to construct a new underground pumped storage hydro plant at at its existing Cruachan facility in Argyll. The new plant, with an estimated cost of £500 million, is set to be a critical component in Scotland's journey to achieve net zero emissions.
The Scottish Government's formal approval will see the expansion of the iconic 'Hollow Mountain' Cruachan Power Station, creating an underground plant that will enhance UK energy security through flexible generation while facilitating the integration of more wind power into the grid. The project is part of a broader £7 billion strategic investment plan by Drax in clean energy technologies between 2024 and 2030, which includes long-duration storage and Bioenergy with Carbon Capture and Storage (BECCS) projects, aimed at addressing climate change and bolstering national energy security.
The new 600MW plant will be constructed adjacent to the existing underground facility at Cruachan, effectively doubling the site's total generation capacity to over 1GW. This expansion is expected to generate nearly 1000 jobs during its development phase, providing a significant boost to the local economy.
Scotland's First Minister, Humza Yousaf, visited Drax's Cruachan facility on the shores of Loch Awe and emphasized the need for an appropriate market mechanism for hydro power and other long-duration energy storage technologies. He called on the UK Government to take action, providing developers with the certainty required to build new pumped storage hydro plants. Yousaf stated that hydropower had great potential to play a significant role in achieving net zero emissions and ensuring a secure electricity supply across the UK.
Drax Group CEO, Will Gardiner, hailed the approval as a major milestone in their plans to construct Britain's first new pumped storage hydro plant in decades.
“These plants play a critical role in stabilising the electricity system, helping to balance supply and demand through storing excess power from the national grid. When Scotland’s wind turbines are generating more power than we need, Cruachan steps in to store the renewable electricity so it doesn’t go to waste,” Gardiner said. “With the right support from the UK Government, Drax will invest c.£500m to more than double Cruachan’s generating capacity and support almost 1,000 jobs across the supply chain during construction.”
However, the expansion of Cruachan relies on the UK Government providing an updated financial stabilisation mechanism, as the absence of a framework for large-scale, long-duration storage technologies has prevented new plants from being constructed in the UK since 1984, despite their vital role in the decarbonisation process.
“We know that there remain a number of challenges in developing new hydro power projects in Scotland,” commented Humza Yousaf. “The Scottish Government will continue to urge the UK government to provide an appropriate market mechanism for hydro power and other long duration energy storage technologies, to ensure that the potential for hydro power is fully realised.”
With the right support from the UK Government, the new underground pumped storage hydro plant at Cruachan could become operational as early as 2030.
