A final investment decision is expected next year and SSE is still looking for policy clarity from the UK government about how pumped storage can generate revenue from supporting the grid. If that is forthcoming SSE believes that the scheme could be operational in 2031.
Gregor Alexander, SSE’s finance director, confirmed that the project, forecast to cost £1.5 billion, did not need government subsidies but there had to be “certainty” from Westminster. He said that the £100 million investment was a “significant down payment” to keep the development moving forward but warned that a positive final decision would depend “on the prevailing policy environment”.