SSEN Transmission has entered into capacity reservation agreements with Hitachi Energy for the HVDC converter system and NKT for the high voltage direct current (HVDC) cable for the Western Isles and Spittal-Peterhead subsea links.
This crucial milestone secures the capacity for the production and installation of the HVDC cable and converter stations in the timescale required for both the Western Isles and Spittal-Peterhead projects to meet their targeted energisation date in 2030, SSEN said.
For NKT, the two turnkey projects will comprise design, production and installation of both on- and offshore cable systems.
The combined value of the two projects is not yet firmly fixed, however, NKT estimates it to be over €1bn upon clarification of final scope.
Both projects are part of a major upgrade of the electricity transmission network across Great Britain that is required to help meet the UK and Scottish Governments 2030 renewable energy and climate change targets.
These projects will also help secure the county’s future energy independence by enabling the connection and transportation of affordable and homegrown low carbon power, SSEN said.
It should also reducing the country’s dependence on – and price exposure to – volatile global wholesale energy markets. it added.
Sandy Mactaggart, director of offshore delivery for SSEN Transmission, said: “We are delighted to announce we have successfully secured for manufacturing and installation capacity with our supply chain partners for the Western Isles and Spittal-Peterhead HVDC converter systems and cables which is another hugely important step to support the timely delivery of these projects.
“Recognising the unprecedented global demand for HVDC technology, we have acted with pace to secure these key components at the earliest opportunity and we now look forward to concluding contractual arrangements and building on our long-established and strong working relationship with Hitachi Energy and NKT.”
Niklas Persson, managing director at Hitachi Energy’s Grid Integration business, added: “We are extremely proud to further strengthen our long-standing collaboration and proven track record with SSEN Transmission.
“These agreements allow us to firmly plan key skilled resources and capacity to expedite the first two projects of this ground-breaking program.
“Based on new ways of working, standardization of solutions and synergies between projects, we are setting the benchmark for deploying HVDC technology at scale and with speed to accelerate the energy transition and make a sustainable energy future a reality.”
Claes Westerlind, NKT president and chief executive, said: “The reservation of production and offshore installation capacity is an important milestone in the collaboration with SSEN Transmission and our continuous support of the green transition in Scotland.
“The projects are an excellent fit with our decision to expand our high-voltage production capacity in Karlskrona and add a new market leading cable-laying vessel to our fleet.
“We are excited to leverage our extensive expertise in large turnkey HVDC-projects to strengthen the interconnection of the Scottish power grid.”