• Cia Aig run-of-river station starts generating electricity

• Grudie run-of-river scheme under construction

• Scotland remains a growth area for hydropower

RWE International is increasing its hydropower portfolio in Scotland. After the commissioning of the Cia Aig run-of-river scheme the company now operates 15 hydroelectric power stations in Scotland. In February construction of the 2 megawatt (MW) Grudie hydro scheme started. RWE International maintains its plans to grow the number of small-scale hydroelectric power plants in Scotland despite the UK Government’s decision to cut support for renewable energy projects. Hydropower often has base-load capability and is an important element in the renewable energy mix. Nevertheless, it is facing increasing pressure in Germany, as well. 

In March 2016 after nearly two years of construction the Cia Aig run-of-river scheme started generating electricity. With a capacity of 2 MW the station will produce sufficient green energy to supply an equivalent of about 1,850 homes annually. Construction of the 2 MW Grudie hydro scheme, which is approximately 120 kilometres to the north of Cia Aig, started in February.

Hans-Christoph Funke, Head of the Hydropower Division at RWE International said: “Scotland offers optimum conditions for small-scale, distributed hydroelectric schemes, which preserve the ecosystems of small rivers and the landscape and make an important contribution to distributed renewable energy generation. We want to focus on such renewable energy projects in the future and intend to develop and build additional power plants. We count on the support of the British government.”

In 2015 the UK Government cut feed-in tariffs for small-scale hydropower, as well as removing the Climate Change Levy exemption for renewably sourced electricity. However, RWE International will remain committed to the further development plans of economic hydro power in the UK. For many other technologies the changes have also been unfavourable, in that RWE International has had to put its onshore wind growth plans in the UK on hold and focus on constructing projects with a route to market.

In Germany, hydropower is under enormous cost pressure as well. Operating costs have risen because of, for example, significantly increased water charges. In addition, the low power price has had an impact on the earnings of hydropower plants which are not subsidised by the German Renewable Energy Act. This also worries Funke: “Hydropower is nearly constantly available and thereby constitutes the backbone of renewable energies. A continued commitment to this technology requires legal and political conditions which enable profitable operation in the long term.”

Overall, RWE International operates hydroelectric power stations in Germany, UK, France, Spain and Portugal with an installed capacity of 522 MW. The largest portfolio is located in Germany with 393 MW, followed by 80 MW of installed capacity in the UK. RWE International operates 15 hydro schemes in Scotland with a total capacity of 30 MW.