Ofgem has conditionally approved Scottish and Southern Electricity Network’s (SSEN) plans for a new 220MW transmission connection between the Orkney Islands and the mainland.
The £260 million link is scheduled to be completed by 2023 and will enable new renewable projects to export power to the rest of Great Britain.
The approval is dependent on at least 135MW of new wind capacity either being awarded a contract for difference (CfD) or being deemed to be likely to be developed by December 2021.
In the case of the latter, this would require an independent audit to state that the project in question is financially viable, has signed a grid connection agreement and has been granted planning permission.
SSEN originally argued that the connection would be justified by just 70MW of new renewable capacity.
Ofgem recently delayed its final decisions on whether approve funding for two new transmission links to the Western Isles and Shetland whilst it awaits the results from the third CfD auction.
Like the Orkney project, both have been approved on the condition that sufficient wind capacity secures CfDs.
The final decisions were previously scheduled for the summer and mid-2019 respectively but were postponed after the sealed bid window for the auction was extended due to a legal challenge.