Shetland subsea cable given green light by Ofgem
● Bid to export renewable electricity to the rest of the UK
A 600MW subsea electricity transmission link from Shetland to mainland Scotland has been given the go-ahead by the regulator.
Ofgem has approved a proposal by scottish and southern Electricity Networks (SSEN) to build the link which would allow new wind farms on Shetland to export renewable electricity to the rest of Great Britain and help ensure supply of electricity on the islands.
The cable will also mean that electricity can be imported to Shetland, offering power security for the island once the power station in Lerwick has been switched off in five years time.
However, Ofgem’s approval is subject to receiving sufficient evidence by the end of 2020 that the 457MW Viking Energy Wind Farm project planned for Shetland is likely to go ahead.
The regulator previously rejected the link, saying in October that the failure of the projects to secure subsidies meant it was not able to approve it and another from the Western Isles, but said it would consider revised plans. That came six months after it had originally said it was minded to approve the Shetland proposals. In the Western Isles, Ofgem said that only a lower powered 450MW link costing £40 million less would be justified.
Meanwhile, for the Viking wind farm to go ahead depends on it securing subsidies through the UK Government’s Contracts for Difference auction, which is likely to be confirmed by the end of this year.
Ofgem regulates network companies including SSEN, which is a subsidiary of SSE. All energy consumers pay for the cost of investment in new network capacity through their energy bills. Ofgem chief executive Jonathan Brearley said: “Ofgem’s immediate focus is to support the energy industry so it can respond effectively to the Covid-19 pandemic and ensure consumers, especially the vulnerable, are protected. Today’s announcement will help stimulate economic growth as the economy recovers from Covid-19 as well as unlocking Shetland’s potential.”
A spokesman for SSEN said: “SSEN Transmission welcomes the publication of Ofgem’s consultation setting out its minded-to position to approve a 600MW transmission connection from Shetland to the GB mainland.
“As well as unlocking Shetland’s renewable potential, the link would help address Shetland’s security of supply needs.”