A SCOTTISH company specialising in pumped storage hydro has raised £1.6 million after yesterday completing its second round of funding on an ethical peer-to-peer investment platform.

Hamilton-based ILI Group raised the funds with Abundance to continue development of three projects in Scotland.

Pumped storage hydro allows the National Grid to store excess energy that cannot be used by consumers during times of peak wind or solar generation, using it to pump water from a lower to an upper reservoir, where it is held until it is needed.

Then, it is released to the lower reservoir through turbines, generating electricity like a conventional hydro plant – a process that can help balance the growing proportion of variable renewable energy sources on the grid.

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ILI CEO, Mark Wilson, said: “We are delighted Abundance investors have again enabled us to reach our investment target and have backed our projects even in the current political uncertainty surrounding Brexit.

“As the country wakes up to the reality of climate change, it’s my belief that investors have recognised investments that will require backing whatever happens politically. Energy storage projects like these will be crucial in enabling the deployment of further renewable energy, ensuring we have a clean, stable, and sustainable future.”

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Over the last six years, Abundance has raised £97m to finance 38 green and socially useful projects, including wind farms, geothermal and tidal energy, and social housing.

Louise Wilson, its co-founder and joint MD, added: “Abundance investors are playing a leading role in funding the development we badly need to transition to a clean energy future, and clearly have a strong appetite for projects like these that are helping to deliver a greener grid.”