Norway's Statkraft to buy 450 MW Loch Ness water battery

"Pending a final investment decision, this significant UK renewable energy infrastructure project will support hundreds of jobs during construction and provide locally based permanent jobs once operational," Statkraft stated in a press release.

“Statkraftis fully committed to supporting the UK in strengthening its energy security and helping to secure the economic benefits of the net zero transition,” said the company’s UK managing director, Kevin O’Donovan. “The acquisition of this significant pumped hydro storage scheme will play a key role in that," he added.

“But there needs to be an appropriate support mechanism in place,” he said, “so we’re now looking to the UK Government to provide the certainty that will allow us to proceed with confidence," O’Donovan added.

Kevin O’Donovan echoed calls from industry and the Scottish government for Westminster to support the development of long-duration energy storage – including pumped hydro storage – through a market support mechanism. The industry has proposed a “cap-and-floor mechanism” to guarantee a minimum income for pumped hydro projects that have received planning permission.

ILI CEO Mark Wilson urged the UK government to provide support mechanisms for long-duration storage and become a world leader in achieving net zero. In July, the Scottish government approved a 600MW pumped hydro plant on Ben Cruachan, also known as the "Hollow Mountain". The UK’s Drax Group, which developed the project, called for a financial stabilization mechanism to support other similar "water batteries."

Who is Statkraft?

Statkraft is a European company that was founded in Norway over 125 years ago. It is the largest producer of hydroelectricity in Europe. Statkraft currently has several pumped storage plants in operation in Norway and Germany, in addition to more than 350 other hydroelectric power plants. One of its notable hydroelectric power plants is Rheidol, located near Aberystwyth in Wales.Statkraft is also involved in the development and operation of various other technologies such as wind, solar, grid stability, battery storage, hydropower, and green hydrogen. The company has a strong presence in Scotland with its headquarters located in Glasgow, and Keith Greener Grid Park situated in Moray. Statkraft operates several wind farms in Scotland, and it has other projects under construction or in planning stages which represent a potential future capital investment of at least £2bn in Scotland.