Scottish Hydro Electric Power Distribution will invite bids this spring for new sources of power generation in Shetland as it plans for the end of Lerwick power station’s operational life in 2019.
The process of preparing the technical information upon which detailed bids will be based has been extended to take account of the level of interest received and the range of technologies potentially involved. SHEPD said this work is on course to be completed by May.
A pre-qualification process through which potential suppliers were invited to come forward was completed last autumn.
A year ago, SHEPD received over 300 responses to a consultation on the structure of a procurement process for new power supplies. This was conducted at the request of energy regulator Ofgem to identify the most cost-effective solution for the future of the islands’ network.
SHEPD’s team delivering the competitive process has been joined by Dan Pearson, former chief executive of Caithness tidal project MeyGen and executive management team member at Atlantis Resources.
SHEPD project manager Pearson said: “A lot of work has already gone in to the preparation of what is a new process for Shetland to reflect the unique circumstances of the island network.
“The process is unavoidably complex in order to make it as open as possible to all technologies, so that the most economic overall solution can be identified. We are making good progress and will be working hard with Ofgem over the coming months to ensure that the tender documents establish a strong foundation for the future of Shetland’s electricity supply.”
SHEPD, part of SSE, owns and operates the electricity distribution network on Shetland. As Shetland is not currently connected to National Grid, SHEPD also balances generation with demand.
Image: Shetlands (Shetland Islands Council)
