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SSE submits case for Orkney connection

4C Offshore | Tom Russell
By: Tom Russell 06/03/2018 SSE
Scottish and Southern Electricity Networks (SSEN), operating as Scottish Hydro Electric Transmission under licence, has submitted a Strategic Wider Works (SWW) ‘Final Needs Case’ to the UK's Office of Gas and Electricity Markets (Ofgem) for a subsea cable transmission link from Orkney to the Scottish mainland. 

The network reinforcement is required to enable renewable generation seeking to connect on Orkney access to the GB market, allowing Orkney to unlock its vast renewables potential.

Pending regulatory approval, SSEN’s proposed solution would deliver a phased approach to reinforcement, which will initially deliver a single 220kV subsea cable in October 2022, followed by a second cable of similar specification once further generation has committed and the economic case has been made for the further investment. 

In the Needs Case, SSEN presents an analysis of the investment options available to meet a range of credible future generation scenarios on the Orkney Islands. This analysis concludes that the ‘tipping point’ to justify the investment for the first cable is no more than 70MW, the point at which the cost of the investment is exceeded by the benefits of the renewable energy supplied to energy consumers. SSEN’s analysis has been assessed by both National Grid, as the System Operator, and independent economic consultants. 

SSEN is therefore requesting a conditional approval of the Needs Case from Ofgem subject to demonstration that 70MW of generation has been committed to by developers.

As part of its business case, SSEN is proposing an Alternative Approach to the current “first to contract, first to connect” arrangements to unlock potential barriers to connection.  The Alternative Approach, which is also subject to regulatory approval, would see capacity allocated on a “ready to connect” basis.  This will allow customers who are ready to connect to progress quicker; and ensure the new capacity is fully utilised.

Dave Gardner, Director of Transmission, said: “We strongly believe our proposals for Orkney represent a strong and compelling economic case for reinforcement and the best possible opportunity to unlock Orkney’s renewable potential. We now look forward to working constructively with Ofgem as they review our submission.”

SSEN is currently consulting on the principles, development and framework for the proposed Alternative Approach to the reinforcement of Orkney.  The consultation is open until 12th March 2018.

The network infrastructure required to provide the transmission connection to Orkney is currently in development and is subject to planning approval. 

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