United Kingdom

Hydropower provides only about 2% of the total electricity consumption of the United Kingdom, Most of the generation takes place in Scotland, which is both mountainous and wet, with Wales also making a contribution. England and Northern Ireland have many quite small hydroelectric projects but their total contribution is not large. Total installed capacity (excluding pumped storage sites) is 1349 MW.

History of Hydropower development

The great period of hydropower construction occurred in the years after the Second World War - from 1948 to 1965, when most of the Scottish schemes were built by the North of Scotland Hydroelectric Board. Since that time there has been little further construction due to increasing opposition to reservoir construction, on environmental grounds. Today, there are over 50 main hydropower stations in Scotland with an installed capacity of around 1050 MW. In addition there are three pumped storage power stations with a combined capacity of 830 MW. In Wales the Dinorwig pumped storage scheme has an installed capacity of 1200 MW and there are two other main hydro stations providing 16 MW.

Hydropower Potential

Various estimates have been made about how much potential hydropower is available for development in the U.K. There is probably a further 750 MW of capacity in Scotland, but it is difficult to say how much of this would be economically viable and equally importantly, environmentally acceptable.

So far as small hydro is concerned, there is a potential for about 300 MW of plants less than 10 MW, but probably not more than one third of this would be economically exploitable.

Organization of the Electricity Sector

As part of the process of privatising the U.K’s electricity industry, an Office of Electricity Regulation (OFFER) was established and a Director General and staff appointed. Scotland and Northern Ireland have Deputy Director Generals, (Scotland) and (Northern Ireland) respectively. OFFER has powers to regulate prices to ensure they comply with a formula based on the Retail Price Index. It can require individual companies to sell generating capacity, if it judges that competition is being adversely affected by monopolistic tendencies. The whole of the hydroelectric generating capacity in the U.K. is now privately owned, including the pumped storage stations. The national grid has also been privatised, and in 1998 the electricity market is to become completely open to competition, though it will continue to be regulated by OFFER.

Government Policy and Licensing

The U.K. Government does not discourage hydropower development and indeed claims the converse. However, the process described is rather bureaucratic and is an expensive gamble for the small developer, as experience indicates that no more than one in three bidders is successful.

Water resources in England and Wales are controlled by the Environment Agency (EA), a recently established quasi-governmental body which has subsumed the duties of the previous National Rivers Authority. The EA issues licences for all “abstractions” from water courses. In Scotland this duty is fulfilled by the River Purification Boards and in Northern Ireland by the Environment Department. Appellants may appeal to the relevant Secretary of State against decisions, but negotiation is generally a better route.

Total Hydropower Installed Capacity share.

Total hydroelectric capacity in the UK has remained approximately the same over the last ten years, at about 1,400 MW, but because of the gradual increase in total generating capacity, currently about 60,000 MW, its share is gradually decreasing. There is however a definite increase in small hydro, due to the NFFO, but this is too small to compensate for the declining market share.