Shetland transmission link ‘unlocks £1bn investment’

Perth-based renewable energy and electricity networks giant SSE plc said the decision by Ofgem to approve the 600MW HVDC transmission link connecting Shetland to the UK mainland will unlock more than £1 billion of investment.

SSE said that with all necessary regulatory and planning approvals now in place, construction of the subsea link, all associated onshore transmission infrastructure and the Viking wind farm will scale up in the coming weeks.

“Approval is conditional on Ofgem being satisfied, by the end of 2020, that Viking wind farm is likely to go ahead,” said SSE.

“SSE Renewables is engaging with Ofgem to provide satisfactory evidence as set out in the needs case consultation.”

SSE added: “The link, being taken forward by SSE’s transmission business, Scottish and Southern Electricity Networks Transmission (SSEN Transmission), will facilitate the connection of renewable electricity developments on Shetland, including SSE Renewables’ 443 MW Viking wind farm which reached a final investment decision in June 2020.

“The link will also support Shetland’s future security of supply needs and will connect Shetland to the main GB electricity system for the first time and represents a material cost saving for consumers …

“The link will also enable a ‘whole system’ approach to decarbonising Shetland’s economy, supporting the transition to low carbon heat and transport. 

“It will also allow Shetland’s oil and gas sector to decarbonise its operational electricity requirements, a critical step in the transition to net zero emissions.

“In parallel, SSE’s distribution business, SSEN Distribution, is progressing plans for an innovative and cost-effective backup solution to support security of supply and will update stakeholders later this year.

“With all necessary regulatory and planning approvals now in place, construction of the subsea link, all associated onshore transmission infrastructure and Viking wind farm will scale up in the coming weeks, providing an immediate boost to the green recovery from the coronavirus pandemic and supporting the UK and Scotland’s commitments to net zero emissions by 2050 and 2045 respectively.”

SSE CEO Alistair Phillips-Davies, said: “It has been a long journey, but with a combined investment in excess of £1bn, the construction of the subsea transmission link, all associated onshore infrastructure and the Viking Energy wind farm will deliver substantial socio-economic and environmental benefits to Shetland’s, Scotland’s and the UK’s economy, supporting hundreds of skilled jobs in the process.

“This decision by Ofgem appropriately balances stakeholder interests.

“That’s something we would hope to see Ofgem return to in its RIIO-T2 price control process, where we need a substantial increase in ambition from what’s in the draft determination if we are to maximise our chances of  delivering on net zero.”

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.