OFGEM has approved a proposal by Scottish and Southern Electricity Networks (SSEN) to build a 600MW subsea electricity transmission link from Shetland to mainland Scotland.
The link would allow new wind farms on Shetland to export renewable electricity to the rest of Great Britain and help ensure supply of electricity on the islands.
Jonathan Brearley, chief executive of Ofgem, commented: “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.”
Ofgem’s approval is subject to receiving sufficient evidence by the end of 2020 that the 457MW Viking Energy Wind Farm project planned for Shetland is likely to go ahead.
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.