Scottish and Southern Electricity Networks (SSEN) has resubmitted to Ofgem the needs case for its proposed transmission link to Shetland.
Its application for funding was rejected by the regulator in October after the Viking Link windfarm that is planned to be built on the islands failed to secure an agreement in the most recent Contracts for Difference auction. Its success was a condition of approval.
Ofgem invited SSEN to submit a revised needs case for the project, adding that the company may wish to consider changing the size of the connection or proposing alternative approval conditions.
However, the network operator has maintained the need for a 600MW connection. It said approval should be subject to a final investment decision for the 475MW Viking Link windfarm.
SSEN said the link between Kergord in Shetland and Noss Head on the Scottish mainland would allow renewable generators on the islands to export power to the wider market.
The company said it would ensure also the security of supplies following the planned closure of the Lerwick power station in 2025. It was on this basis that Ofgem approved a request by SSEN’s distribution arm to contribute £250 million of the total cost of £709 million.
The regulator said it will consult during early 2020 on a similar requests by SSEN for its distribution business to contribute towards connections to Orkney and the Western Isles.
Rob McDonald, managing director for transmission at SSEN, said: “We have submitted a robust investment case to Ofgem which makes it clear that a 600MW link remains the most economic, efficient and timely option to secure Shetland’s future energy needs.
“As well as providing a connection for Shetland’s renewables, the link will also help address Shetland’s security of supply needs as well as offering Shetland’s oil and gas sector a unique opportunity to decarbonise its operational electricity requirements, delivering a whole system approach to support the transition to net zero emissions.
“Whilst we have listened to calls to consider delaying investment to develop a bigger link, our analysis shows that a bigger link would not be economic or efficient and would create a delay of at least two years, jeopardising the potential of any transmission link to Shetland proceeding.”
SSEN is still hoping to energise the cable, which would be the first connection between Shetland and the mainland power grid, by April 2024.
Earlier this week, Ofgem launched an investigation into the delivery and operation of the Western Link cable between Scotland and Wales after it suffered a series of outages since being commissioning in 2018.
The operator – a joint venture between National Grid and Scottish Power – paid generators £5 million in compensation after the most recent failure forced windfarms to curtail their output.