Scotland's Hydro Power Misses Out on Investment

Scotland's potential for small-scale hydro-energy investment is being hampered by a national focus on wind and solar power, according to industry developers. Foster Turner Hydro has paused construction on a Highlands project near Gairloch, capable of powering approximately 4,500 homes, due to an inability to secure a contract for grid electricity supply. This halt has been in effect for over a year, as the project lacks the price certainty provided by the UK's Contracts for Difference (CfD) scheme.

Companies argue that small-scale hydro projects are disadvantaged in the CfD auction process. While wave and tidal power benefit from ring-fenced funding, hydro schemes must compete directly with less expensive wind and solar projects. The British Hydropower Association (BHA) highlights that hydro power, especially as a 'winter generator,' offers crucial grid stability and complementary power when solar output is low. Scotland, historically a pioneer in hydro-electricity, now sees about 80% of the UK's 1800 hydro schemes, with past projects like Sloy on Loch Lomond still operational since their 1951 completion.