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Energy Flowing in the Highlands

Mountainous landscapes and a humid climate: Scotland has the perfect conditions for hydroelectric power plants. Not surprising then that Koehler Renewable Energy runs seven plants there and is working on expanding its portfolio even further.

The Pitnacree Estate is located in the middle of the Scottish Highlands, not too far from the town of Pitlochry. It is an idyllic landscape – one that is extremely popular with tourists – with an incredible number of rivers and streams. Not too far from there, in fact, two large rivers merge: the River Tummel and the River Tay. Meanwhile, one of countless small streams in the area runs through the peaceful, somewhat remote estate itself, where it has driven a power plant since 2015. This Pitnacree hydroelectric power plant was developed and built by the estate’s private owner. It has an installed capacity of 300 kilowatts and a high efficiency of 82% at a maximum flow rate of 236 liters per second, making it a crucial part of the region’s renewable energy infrastructure.

In 2024, Koehler Renewable Energy purchased the power plant through its subsidiary in the UK. “To put it simply, the power plant is a perfect fit for our portfolio,” explains Koehler Renewable Energy UK Managing Director Alan Mathewson. The company has been active in the UK since 2013, initially as part of a joint venture and, since September 2021, as its own company owning a wind farm and six hydroelectric power plants. So when the Pitnacree hydroelectric power plant’s owner put it on the market, Koehler Renewable Energy UK submitted a bid. “We were able to make a good offer and acquire the plant,” Mathewson recalls.

Just like with all the other hydroelectric power plants operated by the Koehler Group’s energy subsidiary, the new one is a run-of-river hydropower plant: A small part of the flowing water is conveyed through a turbine that in turn drives a generator, so converting the water’s kinetic energy into electricity. “The advantage of this technology is its reliability,” Asset Manager John Cuthbert explains. At Koehler Renewable Energy, his daily job is to make sure all facilities are properly taken care of. “Run-of-river power plants produce electricity at a very consistent rate and around the clock.”

We’re a family business and are not focused on short-term profit or on maximizing shareholder value.

Alan Mathewson

Koehler Renewable Energy UK Managing Director

8.957

megawatt hours of energy were generated with hydropower from Scotland in 2024.

Hydropower expansion

Put together, the company’s seven hydroelectric power plants generate a total of around 3.1 megawatts. On top of that, there are six turbines at the Edintore wind farm that produce 14.1 megawatts. “Our plan is to continue growing,” Mathewson explains. In 2021, the company started operations with two employees in the UK – that number has since grown to five, and the goal is to employ eleven people by 2029. Moreover, Mathewson wants to add additional facilities to the company’s portfolio. “We have five wind farm projects in the development stage right now. And for the one that is farthest along in the process, we’re actually expecting a planning decision in the summer of 2025.” On top of this, he also wants to expand the company’s hydropower portfolio.

Koehler’s strategy has a strong focus on the long term. Hydroelectric power plants are a perfect fit for that.

Nicolas Christoph

Corporate Director of Wind Power, Solar

Hydro & Business Development at Koehler Renewable Energy

Alan Mathewson (left) and Asset Manager John Cuthbert, whose day-to-day job is to take care of the various facilities.

Longer than a lifetime

“We’re in negotiations for an additional eight plants,” Mathewson says. “But things are still in an early stage right now.” Fortunately, many of the stakeholders in the British hydropower market are familiar with Koehler Renewable Energy UK, and the fact that the company is already running hydroelectric power plants makes it a trustworthy entity. “The hydroelectric power plants are located on land owned by a private individual, and that land has been passed down from generation to generation,” Mathewson explains. In other words, any company that takes over these power plants needs to be in it for the long term and have a bright future. And that is exactly what Koehler brings to the table. “We’re a family business, and in contrast to publicly listed companies, we’re not focused on short-term profit or on maximizing shareholder value. So people come to us when they have something to offer.”

If Koehler Renewable Energy UK is successful at putting the aforementioned eight additional plants into operation, it will be producing a total of 5.5 megawatts with hydropower. And yet that figure is tiny when compared to what the company is planning to do in the area of wind power: Koehler is aiming to generate 300 megawatts with its planned wind farms in the UK. But the company still believes that hydropower is an avenue worth pursuing. “These projects will have an extremely long life,” explains Nicolas Christoph, the Corporate Director of Wind Power, Solar, Hydro & Business Development, who has been with Koehler since 2012. “The fact that we’re a family business means that our strategy has a strong focus on the long term. Facilities such as the Pitnacree power plant are a perfect fit for that. To put things into perspective, wind turbines need to be replaced after 30 years at the latest, while hydroelectric power plants run for much, much longer.” Mathewson adds: “If we act responsibly, which we do, and if we take care of our plants, which we also do, our hydroelectric power plants will generate power for a very long time. And I don’t just mean during my lifetime, but way beyond that as well.”

82 %

is the degree of efficiency achieved by the Pitnacree power plant at the maximum flow rate.