by Press Association
Plans for a subsea electricity cable linking Shetland to the mainland have
been provisionally approved by the energy regulator.
Ofgem said it is minded to approve the Scottish and Southern Energy
Networks (SSEN) 600MW transmission link, which would allow new wind farms
on Shetland to export renewable electricity to the rest of the UK and help
ensure security of supply on the islands.
However it said it is minded to reject a similar project in the Western Isles.
The Shetland project would consist of a single 600MW subsea circuit from
Kergord on Shetland to Noss Head in Caithness on the Scottish mainland,
connecting into SSEN’s recently completed Caithness-Moray transmission link.
It is estimated the link would cost around £709 million and would be
completed in 2024.
Ofgem is now consulting on approving the link subject to SSEN
demonstrating, by the end of 2019, that the Viking Energy Wind Farm project
planned for Shetland has been awarded subsidies through the UK Government’s
Contracts for Difference (CfD) auction.
Colin Nicol, managing director of SSEN, said: “Ofgem’s decision to
provisionally approve SSEN’s 600MW proposed transmission link is an
important milestone in connecting Shetland to the mainland electricity
network and helping to unlock its significant renewables potential.
“There are still a number of steps to be taken before we can proceed with
the transmission connection, in particular the requirement for renewable
developments to secure CfD support in this year’s auction, and we will
continue to engage with key stakeholders during this consultation period.
“We also await clarity from Ofgem on their assessment of our proposed whole
system solution.
“This decision will be important in reducing costs for consumers and
securing the best economic case for delivery of renewable development in
Shetland and Scotland’s other island groups.”
However, the energy regulator has suggested changes to SSEN plans for the
western isles.
In a statement, Ofgem said: “Ofgem is minded to reject SSEN’s separate
proposal to build a 600MW transmission link to connect the Western Isles to
the mainland based on two Lewis Wind Power wind farm projects being awarded
subsidies through the CfD auction because of the risk of consumers paying
for a significantly underutilised link.
“Ofgem would instead support an alternative proposal that more
appropriately protects consumers from the additional costs of funding a
potentially significantly underutilised link.
“This could be either a 450MW or 600MW transmission link depending on any
revised proposals SSEN put forward.”
An initial estimate for the 600MW link for the western isles put the cost
around £663 million and a 450MW link at around £617 million.
SSEN is calling on Ofgem to reconsider its provisional decision and said
that a 450MW link would be short sighted, limiting the potential for
community schemes to benefit from renewables expansion.
Mr Nicol said: “Moving to a 450MW at this late stage also introduces risks
and uncertainty which, in turn, could impact on the delivery of a
transmission link to the Western Isles.”
Ofgem said it plans to reduce costs by seeking to replicate the outcomes of
competition and is minded to use the ‘Competition Proxy’ model, setting the
revenue that SSEN can earn from building and operating the links.
0 Comments