Until recently, hydropower in the United Kingdom did not get much press on the national level. A quiet yet vital backbone of the UK energy system tends to sit in glens and hills, far from the public eye (unless you are a Star Wars fan!), producing low carbon electricity. But these assets are ageing, and with a new energy mix becoming part of our daily reality, our grid system needs additional flexibility which existing and new hydropower assets can provide. Together, they can provide the resilience and energy security required to support a modern energy system powered by renewables.
The Existing Hydropower Market
Not since the early 1980s, with the Dinorwig and Ffestiniog pumped storage projects in Wales, has significant new hydropower capacity been built to support our networks. While the hydropower infrastructure across the UK has continued to produce on-demand energy, with hydropower providing a small but significantly important contribution towards grid balancing, it is important we confront the reality of these ageing assets. Many of these assets are now over 40 years of age (in some cases significantly older) and entering a refurbishment or upgrade cycle, dependent on the revenue mechanism attached to the asset. It must also be recognised that the existing hydropower stations, while old, continue to operate and perform well, reflecting the quality of the engineering, fabrication, and installation from the original components. The right refurbishments or upgrades could see the assets continue to produce clean renewable energy for many more generations, and this should give us confidence that investing in these resources will give the country the stable on-demand source of energy we need in our decarbonised future.
Pumped Storage Hydro: Supporting net zero and energy security
Given the recent ‘minded-to’ decisions from OFGEM related to long Duration Electricity Storage (LDES) and the requirement for back-up sources of dispatchable power to support the UK grid system when renewable sources such as wind or solar are not generating enough energy, hydropower and specifically Pumped Storage Hydro (PSH) are at the forefront of many conversations in this space. Hydropower is a key component of the Government’s Clean Power 2030 strategy and will help underpin the longer-term Net Zero targets. The UK has a pipeline of PSH projects at various stages of development and approval, including Loch Na Cathrach, Loch Kemp, Glenmuckloch, Coire Glas and Earba, representing potentially billions of pounds of development and operations and maintenance spend. Once completed, these PSH sites will offer multi-hour storage capability, matched with fast response dispatch time, combined with decades long operational lifespans. PSH is a proven anchor technology to support the UK’s continuing move to renewable energy generation and our future energy requirements.
Bilfinger’s role in delivering the next generation of hydropower
With over 70 years of experience across Europe, hydropower is an area in which Bilfinger is uniquely placed to deliver value for our customers. Supporting our clients’ assets (including ongoing PSH builds), refurbishments and upgrades, from engineering, through to procurement, manufacturing, construction and commissioning, Bilfinger has the capability and experience along the entire hydropower value chain. Through early engagement, and by putting the Efficiency and Sustainability of these assets at the forefront of our approach, we work with our clients to ensure the most cost-effective solutions are collaboratively identified and implemented on their projects. Bilfinger is a proven partner in asset life extensions and balance of plant modernisation, with recent contract awards in mainland Europe reflecting this.
Bilfinger’s Controls and Automation team, based in Haydock Lancashire specialises in a critical element of updating existing hydropower assets, namely digital and controls upgrades to match new contemporary grid access requirements, and integrated cybersecurity protections. At a time of heightened awareness of our Energy Security, improvements in how the assets are accessed and operated is fundamental to our energy systems network.
In the UK, the capital expenditure on adding new, industrial scale sources of hydro power has been in stagnation for some time. The Pumped Storage Hydro projects have a chance to reverse this, and with our significant experience in penstocks, hydraulic steel structures, and electrical and mechanical balance of plant installation, we stand ready to support PSH projects as they move towards Final Investment Decision.
The Future of Hydropower Starts Now
Hydropower’s second life will be defined not just by policy decisions, but by the industry’s ability to modernise existing infrastructure and successfully deliver new projects at scale.
The opportunity is significant. Ageing assets can continue supporting the UK’s energy system for decades through targeted refurbishment and digital modernisation, while a new generation of Pumped Storage Hydro projects can provide the storage, flexibility and energy security required to underpin a renewable-powered future. With decades of hydropower experience, proven expertise in asset life extension and digital transformation, and strong capabilities across the Pumped Storage Hydro value chain, Bilfinger stands ready to lead from the front. Bilfinger is ready for this moment – to help drive the next chapter of the UK’s renewable energy transition.