OREANDA-NEWS. SSE confirmed that it will proceed with construction of its 7.5MW Glasa1 hydro-electric scheme, near Ardross, Ross-shire.

The project, previously named Kildermorie1, was consented by Scottish Ministers in 2010 and represents an investment by SSE of around GBP 30m. Construction of the scheme will start in late summer this year and project completion is expected during the autumn of 2015.

The Glasa scheme will have a generating capacity of 7.5MW and will produce enough renewable electricity to power around 10,000 homes2. Once commissioned, it will be the largest hydro scheme to be built in the UK in over 5 years and the second largest conventional hydro scheme to be built in over half a century.

SSE had previously stated that development of new conventional hydro schemes such as Glasa would not be possible at the UK ROC level, which was reduced to 0.7 ROCs per MW following a July 2012 banding review. Today’s announcement follows the decision by the Scottish Government in September 2012 to retain the one ROC (Renewable Obligation Certificate) per MW support level for new conventional hydro in Scotland.

The workforce on the project will vary, but it is expected that SSE and contractors’ staff will reach over 100 at the peak of construction activities.

As part of its commitment to a local supply chain, SSE will work with its key civil and mechanical contractors to ensure opportunities for Highland and Scottish businesses are maximised. Available contracts will be posted on SSE’s Open4Business online portal3, where local businesses can sign up and apply for opportunities across SSE’s range of projects in the Highlands and Islands region.

Today’s announcement comes in the 70th anniversary year of large scale hydro development in Scotland, kick-started by the introduction of the Hydro-Electric Development Act (Scotland) in 1943 and the subsequent development of over 50 dams and power stations, all of which still provide a reliable source of renewable electricity to this day.

SSE is proposing a significantly larger pumped storage hydro scheme, Coire Glas, on Loch Lochy, in the Great Glen. The 600MW scheme is currently awaiting planning consent from Scottish Ministers. SSE believes Coire Glas could offer significant benefits to the GB electricity system in terms of capacity and flexibility, but it will require: a supportive public policy and regulatory framework, including the outcome of the UK Government’s electricity market reform proposals; changes to the transmission charging regime envisaged by Ofgem’s Project TransmiT; and the availability of a timely grid connection date. Until this support is clear, SSE is not able to make an investment decision on Coire Glas.

SSE’s Managing Director, Renewables, Jim Smith, said: “Scotland and SSE share a strong legacy of hydro-electric power and I am delighted to be able to announce our investment in the Glasa scheme in what is the 70th anniversary year of large scale hydro development in Scotland.

“I believe that Hydro has an important role to play in the decarbonisation of our generation fleet and in providing a flexible and reliable source of electricity within a balanced energy mix.

“The support given by the Scottish Government in retaining the ROC banding for new hydro effectively led to SSE’s decision to proceed with the Glasa scheme. There are many more challenges to overcome in order to progress with larger projects such as Coire Glas and it is essential that policy makers recognise the benefits new pumped storage hydro will bring to the GB electricity market and ensure the right support mechanisms are in place.”

Scotland’s First Minister Alex Salmond MSP, who is delivering the inaugural Tom Johnston lecture at the Scottish Renewables Hydro Anniversary Dinner this evening, welcomed today’s announcement by SSE:

“Hydro-electric and its role in producing Scotland’s energy is one of the greatest industrial success stories of post-war Britain.

“Hydro drove not only industrial development but also immense social achievement – something which still rings true today as the Scottish Government continues to grow delivery of clean energy through renewables schemes for the 21st Century.”