Scottish and Southern Electricity Networks (SSEN) has presented the case to Ofgem for a new 220MW transmission link between the Orkney Islands and the Scottish mainland.
The company says the subsea cable is required to give renewable generation on the islands access to the mainland energy market. It has submitted a “final needs case” to the regulator for the strategic wider works project.
SSEN has proposed to initially install a single 220kV cable in October 2022. Once renewable developers have committed to further projects and the economic case has been made, it will then proceed with a second similar cable.
According to its analysis, developers would need to commit to just 70MW of new generation to justify the installation of the first cable. This is the “tipping point” at which the cost of the investment is outweighed by the benefits to consumers of the additional renewable output.
SSEN has therefore requested conditional approval for the project from Ofgem subject to the demonstration that developers have committed to building 70MW of new generation.
To ensure the new capacity is fully utilised, the company has proposed an alternative to the current connection arrangements, whereby capacity is allocated on a “first to contract, first to connect” basis. Subject to regulatory approval, capacity would instead be allocated according to who is “ready to connect”.
The Orkney islands are currently connected to the mainland by two 33kV cables installed in 1982 and 1998 with a combined capacity of 40MW.
SSEN director of transmission Dave Gardner, said: “After developing several proposals to provide a transmission reinforcement to Orkney over the years, submitting our needs case to Ofgem for regulatory approval is an important milestone.”
He added: “We strongly believe our proposals for Orkney represent a strong and compelling economic case for reinforcement and the best possible opportunity to unlock Orkney’s renewable potential. We now look forward to working constructively with Ofgem as they review our submission.”
Scotland Office minister Lord Duncan, said: “This announcement from SSE is a very positive next step to allowing Orkney to fully realise its significant potential in delivering renewable energy to the GB grid. I know that the Western Isles and Shetland will also be heartened by this and will be looking for similar progress as soon as possible.”
In November, Ofgem rejected SSEN’s proposals to build a 60MW cable linking the Shetlands Islands to the mainland on the basis it was no longer required.
The government began a consultation in December on plans to allow wind projects on remote islands to compete in future Contracts for Difference auctions. Last month the European Commission told the government it will not block the proposals to classify remote island wind as a separate technology within the auction process. The next round is due to take place in spring 2019.