SSEN welcomes Ofgem approval of Shetland system

Scotland: Scottish and Southern Electricity Networks (SSEN) announced that it welcomed a decision by Ofgem to approve its proposal to secure Shetland’s future electricity needs by contributing toward the Shetland transmission link.

As the distribution system operator for Shetland, SSEN has been working to identify the future security of supply solution for Shetland for a decade, in anticipation of the closure of Lerwick power station, which is nearing the end of its operational life and is expected to cease full duty operations in 2025. The proposal will see SSEN Distribution provide a material financial contribution toward the proposed transmission link.

The level of contribution, $326 M, is based on the value of services that a link would provide to SSEN’s distribution customers on Shetland.

In response to Ofgem’s decision, SSEN Distribution will also now progress preparation of the Shetland standby arrangements, which will complement the transmission link.

According to SSEN, the decision is a critical step forward in securing the network investment required to meet Shetland’s future energy and economic needs. This decision provides Shetland’s renewable developers the clarity they require about their future network charges, helping them make necessary financial investment decisions and provide the evidence required by Ofgem for the regulator to approve the proposed transmission link to the Shetland Isles.

Source: T&D World