WIREDGOV

First Minister Alex Salmond yesterday (16 October, 2014) hailed pumped storage hydro as the natural complement to Scotland’s renewables revolution, and argued the case for transferring energy policy powers to Holyrood.

The First Minister’s remarks came during a tour of one of the world’s most iconic power stations, ScottishPower’s hydro pumped storage station at Cruachan on Loch Awe, where he received an update on the potential to more than double the station’s capacity. It follows the First Minister’s visit to Europe’s largest pump storage facility, Iberdrola’s Cortes La Muela scheme, earlier this year to see the scale of the technology involved.

His visit also coincided with the publication of an authoritative new report on securing Scotland’s power supplies by the UK’s former chief energy regulator, Alistair Buchanan.

The report, published yesterday, highlights the UK’s emerging energy gap and the shift in UK energy policy needed to secure the construction of new clean thermal plant and flexible hydro power in Scotland.

Pumped storage is highlighted in particular as the ideal technology to sit alongside the growing power of renewables, storing electricity as a giant battery and helping to manage demand.

The report’s key messages include:

• the vital role played by Scottish renewable, thermal and hydro generation in providing secure electricity supplies across Great Britain and in managing the electricity system
• the huge importance of flexible generation, such as pumped storage, relies on adequate incentives for new investment from UK energy policy
• the competitive disadvantage of Scottish generation is a result of high UK transmission charges which discourages new investment in Scotland
• the option to set separate security and reliability of supply standards in Scotland where judged necessary, complementing GB-wide methods
• the need for Scottish issues to play a greater part of GB energy policy making and decisions

It follows an Ofgem report earlier this year which warned of UK spare capacity margins falling to as little as two per cent during 2015/16.

The First Minister said:

“Scotland is a resource rich country, and our energy capabilities and needs are different to those of the UK as a whole. It is imperative that we have the power and responsibility to decide how best we might develop that potential and meet those needs.

“Scotland was one of the first countries to harness power from its waters and the world’s first to develop high head reversible pumped storage. We have the capacity to do much more with our wonderful hydro resource, to generate clean power and store the vast power of renewables.

“That is certainly the case here at Cruachan Power Station, a remarkable monument to the vision of Tom Johnston and to the courage and skill of the Tunnel Tigers who built it. ScottishPower has begun formally to examine the potential to more than double the station’s capacity, which would make a huge contribution to our security of supply.

Referring to the report published yesterday, Assessing Scotland’s Security of Supply in the GB Electricity Market, the First Minister added:

“The report which we publish yesterday makes it clear that investments like this, and in in new capacity right across Scotland, are not best served by the current system. A transfer of energy policy powers, which we have proposed to the Smith Commission, is the best way to ensure that Scotland’s energy security and renewable ambitions remain protected and on track.

“With the regulator predicting an ever tighter gap between electricity generation and peak demand within the GB system, it is clear that increasing new hydro capacity will not only strengthen Scotland’s energy mix, but also enhance the security of supply right across these islands.

“The UK Government has shown willing to provide a generous bespoke contract to support expensive new nuclear power at Hinkley Point C, including massive subsidies up to £35 billion and a loan guarantee of £10 billion. We believe pumped storage – given its huge advantages for our electricity system – should be shown an equivalent level of commitment given that the potential costs are much less than new build nuclear.

“Since 2007 the total output of renewable energy in Scotland has more than doubled and renewables can now meet almost half of Scotland’s electricity needs. In the first three years of this parliament alone, renewable energy generation in Scotland has soared by more than 75 per cent.

“Scotland’s supplies of electricity and gas are more than reliable – they are dependable – but we can offer and do so much more if the shackles are lifted. We need the powers for the parliament to ensure that renewables generate ever more power for Scotland."

Notes To Editors

Assessing Scotland’s security of supply in the GB Electricity market

Ofgem Electricity Capacity Assessment Report 2014

Renewable Elecricity Statistics for Scotland