Hydro Energy Investment in Scotland Hindered by Focus on Wind and Solar
Developers of small-scale hydro projects in Scotland are facing investment challenges due to government focus on wind and solar energy. The UK government plans to confirm funding structures for energy projects next month, but industry leaders argue that hydro power is being overlooked despite its potential to stabilize the grid.
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Investment in small-scale hydro energy projects in Scotland is declining, exacerbated by competition from wind and solar power. Foster Turner Hydro has halted work on the Gaineamhach scheme, which could supply electricity to 4,500 homes and generate 5 MW, due to uncertainty over securing a contract with the national grid.
The UK government is set to finalize funding structures for upcoming bidding rounds, yet current auction formats limit hydro projects to compete against cheaper wind and solar technologies. The British Hydropower Association emphasizes that hydro can provide reliable electricity, especially during winter, suggesting a need for complementary integration of energy sources. High transmission costs further exacerbate the financial viability of hydro projects.
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