SSE Renewables welcomes Ofgem decision on SHEPD contribution to transmission link

SSE Renewables welcomes Ofgem’s decision, announced yesterday, to approve the contribution by Scottish Hydro Electric Power Distribution (SHEPD) towards the capital cost of the new Shetland transmission link. This decision follows Ofgem’s consultation on SHEPD’s proposed contribution, published in May 2019.

SSE Renewables’ Viking Wind Farm, located on Shetland, is the anchor project which commercially underpins the Shetland transmission link. The contribution by SHEPD recognises the key role the link will play in meeting Shetland’s electricity demand into the future, and the benefits it will bring in facilitating the diversification of Shetland’s economy.

Viking Wind Farm is a consented and shovel-ready project. SSE Renewables has consistently stated a timely final decision from Ofgem on the SHEPD contribution is critical to allowing the project to move forward.

SSE Renewables now awaits Ofgem’s decision on the revised Needs Case for the transmission link, expected in the coming months, in order to progress Viking Wind Farm in line with its planned build programme. Despite not securing a Contract for Difference in the UK Government’s auction for low carbon power, SSE Renewables remains fully committed to building Viking Wind Farm and intends to take a final investment decision as soon as possible. In the meantime, enabling work on the project has already begun to ensure that it can proceed without delay when a final investment decision is reached.