Ofgem has rejected plans to power Shetland through a combination of a mainland distribution link and diesel backup in part because of the potential of remote islands wind in upcoming Contracts for Difference auctions.
The regulator turned away from a previously preferred proposal from National Grid Shetland and Aggreko after Westminster’s policy cleared the way for a potential transmission link to the islands off the north coast of Scotland.
It said the emerging alternative raised the prospect of “further savings being realised” after 2025 “if a more integrated solution comes forward, notably if a transmission link is needed following the next CfD round”.
Ofgem said another contributor to the decision was a new EU policy that delays tougher emissions standards on the existing Lerwick Power Station until 2030, rather than 2020.
Shetland system operator SSE had recommended the solution in May.
Image: Viking Energy is among the companies looking to build utility scale wind on Shetland (Viking)
Shetland winds spur Ofgem rethink
Prospect of remote CfDs offers cheaper integrated option for island supply
By EBS