Scottish Hydro Electric Power Distribution (SHEPD) has issued an invitation to tender to 14 organisations competing to provide all or part of a new energy solution for the distribution network in Shetland.
SHEPD said a new energy solution is needed to meet the needs of its customers in the isles after Lerwick power station comes to the end of its operational life.
The tender documents set out the future requirements of the islands’ electricity network and the criteria on which bids will be assessed.
The network is not currently connected to the UK mainland and so the island system needs to be capable of meeting local demand at all times, peaking in winter at around 47MW.
Tenders are being invited under four lots and could include thermal power plants, renewable generators, demand side management systems, electricity storage devices or cable connections.
Bidders now have until October 2016 to respond with proposals, after which the assessment process will take place alongside modelling to ensure that the elements of the new system will work together.
A recommendation to the energy regulator Ofgem is expected in early 2017 which will be the subject of a final consultation.
SHEPD project manager Dan Pearson said: “The documents set out the key technical and commercial information that bidders need to prepare detailed and costed proposals to provide the energy our customers need.
“We have worked closely with Ofgem, our independent auditor and specialist consultants at each stage to reach this point in what is a complex procurement process.
“The level of engagement from the market has been very positive and we will be offering bidders an opportunity next month to obtain any final clarification they may need.
“We will receive bids in the autumn and the final stage of shaping Shetland’s future energy system can then begin.”
Image: the Shetlands (Shetland Islands Council)
Shetland seeks new energy order
Tender invitation to 14 organisations to supply power to island's network
By EBS