LONDON, Feb 11 (Reuters) - British utility Scottish Power

IBE.MC may more than double capacity at its Cruachan pumped storage power station, a plan supported by Scotland's First Minister who wants to maximise the region's renewable energy potential.

Pumped storage power plants generate electricity by moving water between mountain reservoirs, pumping it upwards at times of low demand and releasing it through turbines when consumption needs rise.

Scottish Power could expand capacity at its Cruachan plant to 1,040 megawatts (MW) from 440 MW today by opening an extra cavern and enlarging its upper reservoir.

"Given the increasing importance of renewable energy in Scotland and the increasing need for energy storage, the company is set to carry out a feasibility study to investigate the potential of doubling the capacity of Cruachan," Scottish Power said in a statement.

The expansion would take 8-10 years and around 1,000 workers would be employed during the construction period.

Scotland's First Minister Alex Salmond gave the project national development status, meaning the Scottish government supports it but the plans still need to gain planning consent and other permits.

"This major extension of pump storage technology will allow us to build on Scotland's powerful position as a world leader in harnessing natural resources," Salmond said in a statement.

Scotland generates the bulk of Britain's renewable energy and will help the country meet legally-binding 2020 targets to cut carbon emissions.

In September Scotland will vote on gaining independence from Britain.

(Reporting by Karolin Schaps; editing by Keiron Henderson)

((karolin.schaps@thomsonreuters.com)(+44)(0)(207 542 6622)(Reuters Messaging: karolin.schaps.reuters.com@reuters.net))

Keywords: SCOTTISHPOWER/HYDRO