SSE has received approvals for a £1.2 billion subsea pipeline which will reinforce the ageing north Scotland electricity network and provide new capacity for renewable generation.
Watchdog Ofgem yesterday gave the green light to the proposal by the Perth-based utility’s Scottish Hydro Electricity Transmission for the new 1.2 gigawatt Caithness Moray link.
The regulator also took the opportunity to announce changes to the way in which transmission charges are made.
Industry body Scottish Renewables said the move would help bring the cost of green energy projects in remote locations on the Scottish mainland down to comparable levels with other UK developments.
The group’s senior policy manager Michael Rieley said the establishment of new additional transmission links such as Caithness Moray provided clear benefits for the consumer, and the charging changes would help bring forward investment.
“The industry has been arguing for years that transmission charging for renewable energy projects in the north of Scotland is unfair and in need of reform,” he said.
“Ofgem’s announcement is a long-awaited, and much welcomed, recognition of the value of the Scottish renewable energy sector.
“The changes will help create a more level playing field between generators on the Scottish mainland and those further south, which is crucial if we are to make the transition to a low-carbon energy system while also providing value for consumers.
“Despite our disappointment that the new charging regime won’t be implemented until 2016, four years later than originally estimated, this announcement from Ofgem is undoubtedly good news for the sector.
“We must now focus our attention on ensuring that renewable energy projects on the Scottish islands which will see little impact from these changes are also able to unlock their full renewable energy potential.”
The SHE pipeline project, which will involve the laying of more than 100 miles of cabling, is the largest single investment in the north Scotland network since the 1950s.
SSE yesterday said more than 600 jobs would be created during the construction phase of the project, which will see more than 100 miles of high-voltage direct current cable laid between Blackhillock near Keith to Spittal in central Caithness.
The majority of the cable will be laid into seabed trenches using remotely operated vehicles.
The land-based elements will also be sunk underground.
Work on laying the cable is set to begin within months, and will be completed in 2018.
Mark Mathieson, SHE Transmission managing director, networks, said the go-ahead for the transmission link was a milestone moment.
He said: “Ofgem has undertaken detailed and extensive consultations on this project in order to ensure the right project is delivered at the right time to minimise electricity grid constraints without incurring unnecessary costs for electricity consumers.
“I am very pleased that it has been given the green light, and we will now work with Ofgem on the remaining details and focus on ensuring that the new link is constructed in a safe and responsible way so that the benefits it will bring in unlocking renewable sources of energy for decades to come are realised.”
Martin Crouch, senior partner, transmission, for Ofgem, said the establishment of the new Caithness Moray link would help bring forward more renewable energy generation capacity in the area.
However, power from SSE’s flagship offshore wind project Beatrice in the Moray Firth will be brought ashore via a separate subsea pipeline.
“This is a major step forward for an essential upgrade to the high-voltage grid so that more renewable energy can connect to the networks,” said Mr Crouch.
“We have already started on the next phase of checking SHE’s spending plans, and we will ensure it completes the work as efficiently as possible so that consumers pay a fair price.”
Mr Crouch said that the transmission charging changes had come as a result of extensive consultation with the industry.
He said: “The new arrangements more accurately reflect the costs of Britain’s diverse energy generation, and will lead to lower costs overall for consumers.”