SSEPD opens talks on Shetland energy solution

Scottish and Southern Energy Power Distribution (SSEPD) said on Wednesday it is seeking views from market participants on the most economic and efficient solution to meet the energy needs of the Shetland Islands.

The SSE-owned networks company will open a tender for services to secure supply to the Shetland Islands in spring next year, but has asked the market to respond to an initial consultation by 19 December.

“At this stage, the structure of the future solution is open and potential bidders are being asked to feed in their initial views on this exciting opportunity,” SSEPD said in a statement.

The Shetland Islands are located 200 kilometers off the north east coast of Scotland and offer strong potential for renewable energy development, but the islands are not currently connected to the UK electricity system.

Although the island’s power supply is currently managed through oil- and gas-fired plants both the Lerwick and Sullom Voe stations are expected to close in the next few years.

SSEDP said it anticipates that the services required will include reliable capacity and energy, intermittent energy, and reduction in capacity and energy.

“We are working closely with Ofgem to deliver a process that is open to all technologies. We hope that a wide range of market participants will engage with the current consultation and recognise the opportunity which the process ahead represents,” said SSEPD’s director of distribution Stuart Hogarth.

SSEPD envisages the delivery date for the successful solution to be 2019, but adds that some bidders may want to propose earlier or later delivery dates.

The full consultation document is available on the SSEPD website.