Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what estimate she has made of the potential for Pumped Storage Hydro in ensuring grid stability and reducing constraint payments in respect of renewable energy generated in the south and south west of Scotland.

Long duration electricity storage (LDES) allows excess renewable generation to be stored and then used at peak times, helping to maximise the use of low-cost homegrown energy and reduce reliance on expensive global gas markets. New LDES will be built for the first time in over forty years under the cap and floor policy brought in by this government.

Ofgem is the independent regulator and decision maker for the cap and floor scheme appointed by government to deliver the policy. It assessed all projects through its Multi Criteria Assessment framework, with analytical support from NESO on whole system impacts. This assessment included consideration of system balancing and constraint management costs and resulted in Ofgem’s minded to decision on projects to support through window one, which includes 3.9GW of Pumped Storage Hydro in Scotland.