A SECOND REVOLUTION?

Intro: An investment appraisal and feasibility study is currently underway between the Scottish Government and Scottish Power for a new development of hydro-electric storage at Cruachan, beside Loch Awe

The development of hydro-electric power in the Scottish Highlands was seen as a revolution. It provided for a big leap in living standards, not just because residents in northern Scotland could have a reliable and dependable supply of electricity to light and heat their homes, but also because it became an engine of growth for industry and commerce.

The First Minister in Scotland, Alex Salmond, has announced a second expansion of hydro power. In conjunction with a feasibility study being carried out by Scottish Power, a major utility company, the aims are to more than double the current generation of electricity. Some suggest this could amount to a second revolution.

The technical feasibility is investigating the costs involved in doubling the generating capacity of Scottish Power’s Cruachan pumped storage plant located beside Loch Awe.

In principle, an expansion of pumped storage would be hugely beneficial, because it is regarded as the only reliable means of storing wind energy – which gets generated at times when there is no demand for it. Increasing the storage capacity would help to make wind a far more reliable source of energy supply, and also by reducing carbon emissions.

However, we should not dismiss the fact that this is a feasibility study that will take up to two years to complete. The associated costs and employment creation potential of the project are, at this early stage, a rough guesstimate. It may turn out that the Cruachan expansion plans, like Scottish Power’s schemes for carbon capture and storage at Longannet, and its proposals for the Argyll Array offshore wind farm, are too technically difficult or too costly for it to go ahead.

For it to work (effectively) as a 1,000 megawatt storage battery for wind power, there is the additional problem that the reservoir halfway up Ben Cruachan will have to be increased in size quite dramatically. The obstacles in overcoming resistance from environmental campaigners should not be overlooked, either.

The Scottish Government appears to regard the project as one that is more likely than not to come to fruition. But, notwithstanding whether the project ever goes ahead or not, this will become an investment decision that will serve a valuable political purpose. That decision is to be made after the referendum for Scottish independence in September.

In this context, energy is a problematic issue for Mr Salmond. Expansion of Scottish renewables – which, undoubtedly, the Scottish Government will see as a major source for employment as well as cutting the country’s carbon footprint – is largely dependent on a subsidy which is mostly financed by energy consumers in England and Wales.

Implicit in the First Minister’s arguments is that, such will be England’s needs, the people and businesses south of the Border will be willing to continue paying their ‘foreign’ neighbour the subsidy in maintaining continuity of supply. That’s a difficult assumption to make and certainly holds no guarantee.

History may be tempted to record that if the hydro revolution being envisaged fails to materialise, Mr Salmond has cleverly waved a diversionary red flag for political purposes. We can only hope, though, that the project investment at Cruachan gets the green light.

Under an independent Scotland, energy policy would be under the direct control of the Scottish Government.