The Earba PSH Project has reached another major milestone after securing a provisional Long Duration Electricity Storage (LDES) Cap and Floor contract from Ofgem under the UK Government’s new support mechanism for large-scale energy storage projects.
Ofgem’s published ‘Minded-To' list identifies LDES projects considered economically viable, deliverable and value for money. Earba’s inclusion highlights not only the project’s strategic importance to the UK’s future energy system, but also the significant opportunities it will create across the supply chain as it moves towards delivery.
The announcement follows last month's news that drilling rigs had arrived on site as part of the project’s ongoing ground investigation (GI) programme: https://earbastorage.co.uk/second-ground-investigation-campaign-begins-at-earba-psh-project/
The ‘minded to’ contract award follows a competitive assessment process led by Ofgem and the National Energy System Operator (NESO). The Cap and Floor mechanism was introduced to accelerate investment in long-duration energy storage infrastructure by providing developers with a minimum revenue floor while protecting consumers through a revenue cap.
Located in the Scottish Highlands, the Earba Storage Project is expected to become the UK’s largest pumped storage hydro scheme, with an installed capacity of 1,800MW and 40,000MWh of storage capacity. The scale of the development is expected to create substantial opportunities for contractors, specialist engineering firms, manufacturers and suppliers across the UK, supporting jobs, skills development and long-term investment throughout the infrastructure and energy supply chain.
The project’s construction and delivery programme will require extensive collaboration across civil engineering, tunnelling, electrical infrastructure, plant equipment, transport, environmental services and local subcontracting. This will create opportunities for businesses at both regional and national level.
David Tomb, Project Director of the Earba PSH Project, said:
“ Today’s announcement is a major step forward for the Earba project. We have always been confident in the project’s strong fundamentals and that a Cap and Floor contract in principle would be secured from Ofgem. It is extremely positive to now receive this confirmation. This milestone should provide significant confidence to the supply chain in the long-term viability and momentum of the Earba project. With procurement of the two main contracts - MEICA and Civils - already well underway, it is important to recognise the considerable time, resource and commitment required from contractors throughout these processes. I hope today’s announcement reinforces that the Earba project is progressing at pace, and we look forward to continuing to work closely with partners across the supply chain to deliver this nationally significant project. ”
For more background information on the project visit: https://earbastorage.co.uk/the-project/
