Hopes that Scotland is set for a hydropower boom are fading as giants delay key projects amid tensions with the Government.

SSE and Drax caused excitement with plans for huge pumped hydro storage developments that they said would create hundreds of construction jobs in the Highlands and Argyll.

However, the projects have been cast into uncertainty after cost increases and concerns about issues such as planning consents weakened the commercial appeal of schemes that would entail hefty upfront investment.

Perth based SSE has held out the prospect the Coire Glas development could store enough power for three million homes.

It would work by harnessing the power generated by the flow of water between two reservoirs that SSE plans to develop by Loch Lochy.

The company would use power generated by windfarms in times of low demand to pump water into the upper reservoir. When demand increases the water will be allowed to flow into the lower reservoir turning huge turbines in the process.

Drax has developed a plan to double the capacity of the massive Cruachan Hollow Mountain facility in Argyll, which would involve hollowing out spaces in which it would install more turbines.

READ MORE:

SNP Government oil hypocrisy shocking amid Scottish jobs cull

Israeli-owned firm takes control of UK's biggest gas field

The companies have claimed the schemes could provide vital support for the renewables revolution by tackling the problem caused by the fact that the UK does not have enough capacity to store renewable energy or transport it to centres of high demand.

But in its annual results SSE said it planned to reduce its investment budget by £3 billion, to £17.5bn, citing the challenges posed by the macro environment........

© Herald Scotland