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Ofgem sets £642m allowance for Shetland Link

By: Tom Russell 30/11/2021 SSEN Transmission

General Interconnectors

Ofgem has set an allowance of £642m of capital expenditure for the 600 MW High-Voltage Direct Current (HVDC) Shetland Interconnector project being developed by SSEN Transmission – the electricity transmission owner for the north of Scotland and part of the SSE Group.

The High Voltage Direct Current (HVDC) link will connect Shetland to the GB energy system for the first time, enabling the connection of renewable electricity generation, including the Viking onshore wind farm currently being built by SSE Renewables.

Upon completion, the Shetland Link will connect to the existing Caithness-Moray HVDC link, becoming Europe’s first multi-terminal HVDC system. Construction, which started last summer, continues to make progress, with the project remaining on track for energisation in 2024.

Rob McDonald, Managing Director of SSEN Transmission, said: “We welcome Ofgem’s decision, which recognises the clear consumer benefits associated with our robust, competitively tendered procurement exercise.

“Upon completion, the Shetland link will enable up to 600MW of clean, renewable electricity, to connect to the GB energy system, making a critical contribution to decarbonisation goals as we continue to deliver a network for net zero emissions. It will also support Shetland’s future security of supply with clean, green electricity, reducing reliance on thermal power stations and further supporting decarbonisation goals.

“In developing Europe’s first and the world’s first multi-terminal HVDC system outside of China, Caithness-Moray and Shetland will demonstrate the crucial innovations in developing the HVDC grids of the future, key to support our offshore wind and net zero ambitions.

“As our teams and contractors make great progress with the Shetland link, we continue to focus on progressing further reinforcements across the north of Scotland which are key to ensuring net zero is achievable.”

For more information on interconnector projects worldwide, click here. Alternatively, click here to view 4C Offshore's interactive map.

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Ofgem sets £642m allowance for Shetland Link

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