Ofgem has approved Scottish and Southern Electricity Networks’ proposal to build a 600MW subsea electricity transmission link from Shetland to mainland Scotland.
The UK energy regulator has also launched a consultation on the proposed Final Needs Case for the link and delivery model, and published documents which look at the potential impact of increasing the link to 800MW.
Ofgem’s green light is subject to receiving sufficient evidence by the end of 2020 that the 457MW Viking Energy wind farm planned for Shetland is likely to go ahead.
The link would allow new wind farms on Shetland to export renewable electricity to the rest of Great Britain and help ensure supply of power on the islands.
The future of the transmission link appeared in doubt after the Viking wind farm failed to win a Contract for Difference last year.
However, SSE has made clear that it remains committed to the major wind project and in January re-submitted a revised proposal for the link to Ofgem.
Ofgem regulates network companies including SSEN, which is a subsidiary of SSE.
All energy consumers pay for the cost of investment in new network capacity through their energy bills and the regulator ensures that it obtains the best deal possible for them.
Ofgem chief executive Jonathan Brearley said: “Ofgem’s immediate focus is to support the energy industry so it can respond effectively to the Covid-19 pandemic and ensure consumers, especially the vulnerable, are protected.
“Today’s announcement will help stimulate economic growth as the economy recovers from Covid-19, as well as unlocking Shetland’s potential to supply low cost renewable electricity for consumers across Great Britain.”
SSEN Transmission welcomed the decision and Ofgem’s launch of the consultation, which will close on 18 June.
A spokesperson for the company said: “As well as unlocking Shetland’s renewable potential, the link would help address Shetland’s security of supply needs as well as offering Shetland’s oil and gas sector a unique opportunity to decarbonise its operational electricity requirements, delivering a whole system approach to support the transition to net zero emissions.”