Report highlights renewable energy employment opportunities in the Scottish Highlands

The independently produced report, funded by Statkraft, Europe’s largest generator of renewable energy, and commissioned by the University of the Highlands and Islands (UHI), reviewed the supply and demand of skills predominantly in the Highland Council area. It found that the project offers significant employment opportunities, with up to 500 workers needed during the peak of its construction period. However, to maximise the benefit for local people in employment and training opportunities, a number of challenges need to be overcome.

The scheme, which was acquired by Statkraft in late 2023, will store excess renewable energy for later use when required, such as when renewables production is low or when demand increases significantly. Acting as a large ‘water battery’, Loch na Cathrach will provide clean, flexible power for Scotland and the UK.

Long duration electricity storage is set to play a critical role in enabling the deployment of more domestic renewables, strengthening the UK’s energy security. Pending clarity from the UK government and Ofgem on the finance mechanism, allowing a final investment decision to be taken by Statkraft, the project is expected to support hundreds of jobs during construction, and will provide locally based, permanent roles once operational, which is expected to be by the end of 2030.

Statkraft’s own projections point to 60% of those construction roles as either skilled or semi-skilled, including in civil engineering and tunnel engineering. Additionally, there will be over 120 people employed in non-construction positions such as health and safety, accountancy, and other management and support roles.

The report noted that Loch na Cathrach is one of a number of similar projects proposed in the area that may enter construction over the next few years, and that there is a risk of demand for skills outstripping current levels of supply. It suggested that training providers, such as UHI, should consider the profile of skills needed so that they can create or adjust their courses accordingly, noting that there have been no large scale hydro schemes developed in the area in decades. It also called for developers like Statkraft to work with industry competitors in ‘co-opetition’ – collaborating in order to develop the pool of available labour and skills, for the mutual benefit of a range of projects.

Large scale schemes like Loch na Cathrach have a significant impact on clean energy targets, but if its opportunities are harnessed correctly, it can have a much wider impact. Local employment opportunities mean people can stay in the local area, leading to investment in housing, transport, and amenities, and a much wider legacy left by renewable projects beyond clean energy.

While pumped storage hydro is a vital technology for balancing the grid and supporting the integration of renewables, it faces challenges due to high up-front costs and long payback periods. Statkraft and other developers are waiting for the UK government and Ofgem to confirm details of a new finance mechanism to help overcome these obstacles and to support the deployment of a new wave of long duration electricity storage projects across the country. With further clarity, companies like Statkraft will be in a better position to maximise local benefits in employment and training.

Acting Cabinet Secretary for Net Zero and Energy, Gillian Martin MSP, commented: “Increasing our long duration electricity storage capacity, including pumped hydro storage, is crucial to the energy transition as it plays a vital role in providing flexibility services to the grid and helping to ensure a resilient and secure electricity supply.

“We recognise the importance of providing the current and future workforce with high-quality lifelong skills – either acquired through new learning or upskilling and reskilling – and the pivotal role this plays in our plans to unlock Scotland’s green economic potential.

“The Scottish government is working to ensure that the system is more responsive and in a better position to meet our economic, environmental, and social needs and ambitions.”

Energy Minister, Michael Shanks MP, noted: “We’re reversing a legacy that has seen no new long duration storage built for 40 years and taking steps to unleash private investment in the technology. This can store homegrown renewable power for when it’s needed, helping deliver clean power.

“Not only will this make us more energy secure, protecting billpayers from the tumult of the global fossil fuel markets, but it will also create good news jobs in the industries of the future. We’re working closely with industry, unions, and the Scottish government to ensure workers have the skills to take advantage of these opportunities.”

Iain Robertson, Statkraft’s Head of Scotland, reflected: “Loch na Cathrach can help support a generation of skilled workers in the Highlands, as well as having a transformational impact on our energy security. This report confirms the opportunities it brings, but also sets out the challenges in upskilling the workforce so we can ensure it delivers the maximum employment benefits in the local area.

“Statkraft is committed to backing future skills development by utilising its existing partnerships with education institutions like UHI and undertaking outreach work to highlight the opportunities that infrastructure projects like Loch na Cathrach can offer. However, this requires renewable energy developers, education providers, local authorities and governments to work together to realise the opportunities that will enable a just energy transition.”

Scott Gilbert, Statkraft’s Loch na Cathrach Project Director, stated: “We stand ready to play our part, ensuring the local workforce are informed and can meet the demand for this and other similar projects in the area. This project has the potential to make a significant contribution towards the decarbonisation of the electricity grid by 2030, as well as providing employment opportunities for a generation of skilled clean energy workers.

“Since acquiring Loch na Cathrach, we’ve been working towards getting this scheme ready for construction and look forward to seeing further details of the financing mechanism which will allow us to take the final investment decision and realise its benefits.”

Shona Clyne, UHI’s Head of Economic Development, concluded: “We appreciate Statkraft, one of UHI’s industry partners, funding this independent research, the findings of which provide valuable insights into the scale of opportunities anticipated to arise from the Loch na Cathrach project, its workforce requirements, education and skills development needs. With a student population of over 30 000, and as one of Scotland’s largest providers of apprenticeships, the study findings will be extremely beneficial to UHI, providing key information to enable us to develop our curriculum, and offer options to create and match graduates with industry appropriate skills.

“The prospects for the Highlands and Islands over the next decade are significant and we look forward to working with a range of partners to ensure that our students and graduates are well placed to meet the workforce needs of key sectors to deliver developments in the construction and energy sector such as this.”

 

 

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Read the article online at: https://www.energyglobal.com/energy-storage/31012025/report-highlights-renewable-energy-employment-opportunities-in-the-scottish-highlands/