The Anonymous Widower

Coire Glas Pumped Storage Hydro Could Support 3,000 UK Jobs And £2bn Of Spending

The title of this this post, is the same as that of this news item from SSE.

These first four paragraphs introduce and summarise the news item.

A new independent economic impact study has found that SSE’s proposed Coire Glas Pumped Storage Hydro project in the Scottish Highlands could support almost 3,000 UK construction jobs at peak, deliver a near £2 billion spending boost with UK businesses, and generate £1.5 billion in UK economic value for the UK, if approved for delivery.

The research, undertaken by BiGGAR Economics, highlights the scale of the jobs and economic opportunity presented by the 1.44GW project, one of Britain’s most advanced pumped storage hydro projects.

BiGGAR Economics estimates Coire Glas would require private capital investment of around £3 billion, equivalent to around two Queensferry Crossings.

Realising the projected benefits for UK businesses, workers and communities now depends on Coire Glas securing an investible outcome through Ofgem’s Long Duration Electricity Storage (LDES) framework.

Note.

  1. Later the news item refines the construction benefit as 2880 UK construction jobs at peak, deliver a near £1.94 billion spending boost with UK businesses.
  2. Coire Glas will have an energy storage of at least 45 GWh.
  3. BiGGAR Economics say that the £3 billion needed to build Coire Glas should be possible to raise privately.
  4. The last paragraph almost reads like a plea to the government and Ofgem to get a move on, so that the UK can start to feel the benefits of this project.
  5. There is also no mention on how much Coire Glas will save in avoiding the need to switch off wind farms, when there is too much electricity.
  6. The avioiding of switching off wind farm and a near £1.94 billion spending boost with UK businesses, must surely add a small percentage to UK economic growth, but it doesn’t seem to be included.

I have a few thoughts.

Could Three Billion Pounds Be Raised Privately To Build Coire Glas Pumped Storage Hydro?

I asked Google AI the question in the title of this section and received this answer.

Raising the £3 billion privately to build the Coire Glas Pumped Storage Hydro project is not happening purely through unbacked private risk; it depends on securing a government-backed revenue guarantee.

Private Capital Requirement: An economic study by BiGGAR Economics for developer SSE Renewables estimates the 1.44GW project will require roughly £3 billion in private capital investment.

The Catch (Ofgem’s LDES Framework): Private investors will not commit this scale of capital on merchant power prices alone due to high upfront costs and long payback periods. Unlocking the private funds requires an investable outcome through Ofgem’s Long Duration Electricity Storage (LDES) cap and floor mechanism.

How the Cap and Floor Works: This government-backed framework guarantees a minimum revenue “floor” (underwritten by energy consumers) to de-risk the investment, while capping extreme upside profits.

Current Status: In June 2026, Ofgem placed Coire Glas on its “Minded-to-Decision” list for potential support, though key commercial and regulatory details are still being negotiated before a final investment decision can be made.

Google AI doesn’t seem very hopeful.

What Is The Cost Of The East Anglia THREE Wind Farm?

I am asking this question, as East Anglia THREE is an energy project of a few millions, that is nearing completion.

I asked Google AI and received this answer.

The total estimated cost of the East Anglia THREE offshore wind farm is €5.2 billion (approximately £4 billion to £4.4 billion, or around $4.8 billion).

Key Financial & Project Details:

Total Cost: €5.2 billion

Project Financing: Secured around £3.5 billion to £3.6 billion (€4.1 billion) in green project financing backed by a group of international banks and export credit agencies (such as Denmark’s EIFO).

Ownership: Co-owned 50/50 by Masdar and Iberdrola (through ScottishPower Renewables).

Capacity & Scale: 1,400 MW (1.4 GW) capacity featuring 95 turbines, designed to power roughly 1.3 million homes.

Timeline: Scheduled for full operation in late 2026.

Note.

  1. East Anglia THREE and Coire Glas are both projects of a few billions.
  2. Coire Glas is scheduled to be completed in 2033 according to Google AI.
  3. East Anglia THREE appears to have been successfully financed.
  4. Coire Glas is the first pumped storage hydro to be financed in the UK for some years.
  5. Have similar systems been financed in other countries?

What this financing needs is an innovative bank manager or a Sheikh with loadsamoney.

I used to know one of the former and he took a risk with us, when we were developing Artemis.

Sadly, he’s now helping God with his finances.

Is More Energy Storage Needed Urgently In The Highlands?

I asked Google AI the question in the title of this section and received this answer.

Yes, more energy storage is urgently needed at a national level to balance intermittent renewable generation like wind, though the pace, scale, and local impact of these developments are heavily contested by Highland communities.

The Need for Energy Storage

Grid Balancing: The UK needs massive increases in long-duration energy storage (LDES)—such as pumped storage hydro (PSH) and battery energy storage systems (BESS)—to store excess renewable power and release it during high demand.

National Targets: Expanding storage capacity is viewed as essential for meeting net-zero goals, cutting reliance on gas, and avoiding expensive grid upgrades. Major projects like SSE’s Coire Glas (1.44GW) and Glen Earrach have moved forward through planning and regulatory stages.

Local Concerns and Opposition

“Under Siege” Sentiment: More than 50 Highland community councils have demanded a pause on major energy infrastructure projects, arguing that the region is absorbing a disproportionate share of wind farms, transmission lines, and storage sites without a coherent overall strategy.

Fuel Poverty vs. Local Export: While the Highlands generate far more electricity than they consume, local residents face some of the highest fuel poverty rates and electricity costs in the UK.

Economic and Visual Impact: Local MPs and councils warn that large-scale construction projects often bring temporary workers housed in modular camps rather than permanent local jobs or legacy housing, while threatening the landscape central to the region’s tourism economy. Critics also push for stronger legally mandated community benefit packages rather than voluntary guidelines.

It seems to me, that there is a need for some intelligent management of the construction of energy projects in the Highlands.

 

 

 

 

November 3, 2026 Posted by | Energy, Energy Storage, Finance & Investment, UK Economic Growth | , , , , , , , , , , | 1 Comment