trending Market Intelligence /marketintelligence/en/news-insights/trending/2D604I-YfMvXOUsQbIHnDw2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Ofgem backs 600-MW Shetland Isles link, rejects Western Isles proposal

Q2: U.S. Solar and Wind Power by the Numbers

Essential Energy Insights - September 17, 2020

Essential Energy Insights September 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August

Ofgem backs 600-MW Shetland Isles link, rejects Western Isles proposal

Britain's Office of Gas and Electricity Markets, or Ofgem, is considering approving Scottish and Southern Energy Networks' proposal to build a 600-MW subsea transmission line that would connect the Shetland Isles to the Scottish mainland.

The proposed £709 million link would allow new wind farms on Shetland to export electricity to the rest of Great Britain and help ensure security of supply on the islands. In order to obtain the final Ofgem approval, the SSE PLC subsidiary still needs to demonstrate by the end of 2019 that the proposed 412-MW to 457-MW Viking wind farm on the Shetland archipelago in Scotland secures a U.K. government subsidy contract, the energy regulator announced March 19.

Under the government's contract for difference auction, scheduled to take place by May, onshore wind farms on remote islands and tidal energy projects will compete with offshore wind parks and a range of other technologies for up to 6 GW of capacity commissioned between 2023 and 2025. Under the contract for difference scheme, less-established renewables bid in competitive auctions to receive long-term contracts with a guaranteed strike price.

The proposed Shetland Isles high-voltage, direct-current circuit would run from Kergord on Shetland to Noss Head in Caithness on the Scottish mainland, almost all of which will be underwater. It will run about 260 kilometers and connect into the Caithness-Moray transmission link, a 1,200-MW high-voltage, direct-current project, and would be completed in 2024.

Additionally, Ofgem said it was inclined toward rejecting a separate proposal by Scottish and Southern Energy Networks, or SSEN, for a 600-MW transmission link to connect the Western Isles to the mainland based on two Lewis wind farms, which are being awarded subsidies through the contract for difference auction.

However, the regulator indicated that it could approve a revised proposal for either a 450-MW or 600-MW transmission link provided such alternative plan "more appropriately protects consumers from the additional costs of funding a potentially significantly underutilised link."

As originally proposed, the 600-MW Western Isles link was estimated to cost about £663 million and targeted completion in 2023. SSEN's equivalent initial estimate for a 450-MW link put the cost at around £617 million.

Ofgem plans to use a "competition proxy" model to set the revenue SSEN can earn from building and operating those links based partly on the regulator's experience in reducing costs of connecting offshore wind projects to the grid by tendering the ownership of those lines.

The regulator expects to make a decision on the business case for the Western Isles and Shetland links in mid-2019.

SSEN operates as Scottish Hydro Electric Transmission PLC under license.