ILI Energy - Red John Pumped Storage Hydro

An exciting £495 million investment to deliver a major pumped hydro storage infrastructure project located near Loch Ness in Scotland.

An investment opportunity to help deliver the UK’s first major new pumped storage project of scale in decades.

ILI Group has a total £3 billion investment pipeline (across all projects) and is seeking investors interested in either:

  • Co-development, with ILI, of the Red John (£495 million) pumped storage project to financial close
  • Co-development, with ILI, of battery projects through construction to market operation
  • Outright purchase of individual or combinations of ILI projects at the pre-construction stage
  • Or, investing in ILI Group as a clean energy infrastructure development platform
Aerial view of Loch Ness

Value Raise - £495 million

Clean energy sector pumped hydro storage

Series B Raise

Located in northern Scotland

More on the ILI website

ILI Group already has a successful track record in identifying clean energy infrastructure projects and developing them up to financial close, or sale to other investors for project construction and operation.

ILI’s highly experienced team has proven this expertise, initially in development of wind and solar electricity generation assets, which is now being used for the development of energy storage, both pumped storage and batteries.

The Red John Pumped Storage Hydro Scheme is located near Loch Ness and is a fully consented project with a planned capacity of around 450 megawatts and storage volume of 2800 megawatt hours.

The option/lease agreement has been signed by the landowner which secures rights at the site for 125 years. A grid feasibility report has been issued by National Grid and Scottish Hydro Electric Transmission confirming the viability of the preferred connection point. And a formal grid connection application has now been accepted with a proposed connection date of July 2027.

Investor returns

Revenue forecasts have been developed based on a portfolio of merchant revenues from electricity wholesale and balancing markets, together with expected 15-year capacity market contracts. Currently there are no long-term offtake contracts available for pumped storage plants prior to construction.

However, the UK Government is proposing to introduce a cap and floor revenue support regime for long duration storage which would guarantee a minimum revenue for qualifying projects.

ILI’s pumped storage projects would be expected to qualify for this mechanism. A UK Government Department for Business, Energy, and Industrial Strategy (BEIS) consultation on the proposed mechanism is currently underway, and it is anticipated that a decision will be forthcoming in the coming months.

ILI anticipate investor returns on pumped storage projects to be greater than 10%.

Growth opportunity

ILI’s commitment is to help build a clean, decarbonised and secure energy system for the UK, and have designed and developed a hydro pumped storage project with detailed planning consent in place for the Red John site, based near Loch Ness.

The hydro pumped storage facility will have a storage capacity of approximately 2800 megawatts hours, and approximately 450 megawatts of installed electricity generation capacity. 

The facility proposed is capable of being powered up and down in a matter of seconds. This allows it to help address sudden spikes in demand or drops in supply and is a significant advantage over wind farms that can’t generate on demand.

This project has been in progress since 2017 with a view to packaging it up as a special purpose vehicle (SPV) once planning permission was consented (consent was granted in June 2021).

ILI are now seeking investors or co-developers that will take forward the remaining project development and construction stage. ILI’s target market would be UK developers and operators with direct experience of constructing and operating major infrastructure projects.

More on the ILI website

More on the Red John project

 

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Disclaimer

Whereas every effort has been made to ensure that the information in these pages is accurate, Scottish Enterprise and Scottish Development International does not accept any liability for errors, omissions or misleading statements. And no warranty is given, or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Investors will need to undertake their own due diligence in conjunction with individual project promoters/sponsors in relation to the detailed project investment opportunities presented.