Renewable energy giant Drax has expressed its enthusiasm for the UK Government’s recent announcement of a cap and floor regime as the investment framework for new large-scale, long-duration electricity storage projects. This decision marks a significant step forward in addressing a long-standing policy gap that has hindered the development of new pumped storage hydro plants in the UK.

Drax is already at the forefront of this crucial sector, with plans to expand its existing Cruachan pumped storage facility in Scotland. The company is exploring the construction of a new 600 MW plant adjacent to the existing underground facility, which would effectively double the site's total generation capacity to over 1 GW. This ambitious project is expected to create over 1,100 jobs during the construction phase and contribute a substantial £470 million to the UK economy.

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Pumped storage plants play a vital role in decarbonising the energy grid by acting as giant water batteries. These facilities can store excess renewable energy during periods of high supply and release it when demand exceeds generation, helping to ensure a stable and reliable energy supply. By investing in new pumped storage projects, the UK can enhance its energy security and accelerate its transition to a low-carbon future.

Ian Kinnaird, Drax's Scottish Assets Director, said: "(This) announcement is a critical step forward to removing one of the key hurdles developers face in building a new generation of pumped storage hydro plants. I would like to thank the new Government for moving at speed to do this within their first 100 days in office.

"Pumped storage stabilises the electricity system, helping to balance supply and demand through storing excess power. When Scotland's wind turbines are generating more power than we need, Drax's Cruachan steps in to store the renewable electricity so it doesn't go to waste.

"We look forward to working constructively with the UK Government and other stakeholders on the next steps of this process so we can deliver in partnership a clean power system by 2030 which strengthens our energy security and delivers for consumers."

In addition to the proposed construction of a new plant, Drax is currently progressing an £80 million major refurbishment of its existing Cruachan site. The refurbishment will see original parts replaced and the generating capacity of the power station upgraded from 440 MW to 480 MW.