Cruachan power station set for £80 million upgrade

Drax is to invest £80m in a refurbishment of its ‘hollow mountain’ Cruachan pumped storage hydro power station.

It has appointed global hydropower technology supplier ANDRITZ as the main contractor for the project, which will see the generating capacity of two of the plant’s four units increased by a combined 40 megawatts, to raise the facility’s total generating capacity to 480 MWs.

The units were commissioned in 1965 and contain parts, including their turbines, which are now more than 50 years old. The upgrades should improve their operability and reliability, lengthening their lifespan.

Drax’s investment is underpinned by the award of 15-year capacity market agreement worth around £221m.

This Cruachan upgrade project is separate to Drax’s plan to build a new 600 MW pumped storage power station adjacent to the existing Cruachan facility. A study by trade body Scottish Renewables estimated that the project could create and support up to 1,100 jobs.

Site works will commence in 2025, with ANDRITZ set to install new main inlet valves, with unitised outages in 2026 and 2027 for units three and four respectively.

The upgrade project received development consent from the Scottish Government in December 2023 and was awarded a capacity market agreement by the UK Government in February.

The power station is located on the shores of Loch Awe in Argyll and is one of just four pumped storage hydro facilities in the UK.

Drax’s interim chief operating officer Penny Small said: “Pumped storage hydro is vital to the UK’s energy security, it’s a technology which works in partnership with renewables.

“These plants play a critical role in stabilising the electricity system, helping to balance supply and demand through storing excess power.

“By investing in Cruachan today, Drax is ensuring the power station can play an even bigger role in the energy system of tomorrow. We look forward to working with our contracting partners to deliver this exciting project.”

The SNP's energy security and net zero spokesperson Dave Doogan commented: “With the help of the government, Scotland continues to lead the way in the green renewable sector, which will help households in Scotland with their energy bills and support our transition to net zero.“

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