SSEN Transmission submits Needs Case for Shetland link
Following confirmation from the UK Government to allow remote island onshore wind to compete in the next Contracts for Difference (CfD) auction in May 2019, there is now an opportunity to progress with the transmission reinforcement, subject to the success of Shetland renewable developers in the CfD auction and regulatory approval.
SSEN’s proposed solution would deliver a deliver a single 600MW subsea circuit from Kergord on Shetland to Noss Head in Caithness on the Scottish mainland, connecting into the Caithness-Moray transmission link which is currently under construction.
Dave Gardner, SSEN’s Director of Transmission, said:
“Today marks a significant milestone in providing a transmission connection to Shetland. We believe our proposal represents a robust, economic case for reinforcement and provides the best possible opportunity to unlock Shetland’s renewable potential.
“The submission marks an important first step in the process, however successful delivery will be dependent on sufficient volumes of renewable generation capacity securing a CfD contract to underpin the investment case, in addition to regulatory approval and relevant planning consents.
“We would like to thank our generation customers and wider stakeholders who have helped inform the development of the Needs Case and we now look forward to working constructively with Ofgem as they review our submission.”
SSEN’s Distribution business, Scottish Hydro Electric Power Distribution (SHEPD), is also investigating further options to ensure long term security of supply on Shetland at the most affordable cost, following Ofgem’s decision to reject the Shetland New Energy Solution in November last year. SHEPD is in the process of assessing whether utilisation of the proposed transmission link to meet Shetland’s future energy needs would represent the best value for Shetland and GB consumers compared with alternative options, and will confirm findings in the coming months.
More information on the Shetland Transmission project can be found at http://www.ssen-transmission.co.uk/projects/shetland/
SSE Plc. Press release - SSEN Transmission submits Needs Case for Shetland link. URL: http://sse.com/newsandviews/allarticles/2018/10/ssen-transmission-submits-needs-.... [Date Accessed: 05/10/2018].
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Leading offshore wind developer, SSE Renewables, has welcomed the offshore wind sector deal announced today.SSE Renewables has the largest consented offshore pipeline in Great Britain, the largest offshore market in the world, and has been involved in the development, construction and operation of offshore wind for over 15 years helping to bring long-term jobs and economic development to diverse parts of the country.SSE Renewables’ Director of Generation Development, Paul Cooley, said: “It is an exciting time for the offshore wind sector which has huge potential to contribute more to the country’s climate change goals.“We are working to maximise the value of our own pipeline and we welcome the Sector Deal as a long-term mutual commitment from government and industry to help harness the incredible wind resource that our coastlines offer and deliver significant economic opportunities.“An ambition of at least 30GW of offshore wind capacity is a fantastic start and we believe that we can go further and should aim to build as many offshore wind projects that are needed to help deliver decarbonisation.”SSE has proven its ability to develop, construct and operate industry leading offshore wind projects including the 504MW Greater Gabbard Offshore Wind farm (SSE share 50%) and the 588MW Beatrice Offshore Wind Farm (SSE share 40%), in some of the most difficult, deepest waters in the UK. Beatrice is due to be completed on time and on budget this Spring.SSE has a history of engaging constructively with the UK supply chain in all of our renewable projects to maximise the economic benefits. For Beatrice contracts were placed with companies and businesses across the supply chain including CS Wind’s Machrahanish factory for towers, Global Energy Group’s Nigg Energy Park for turbine assembly, JDR Cables based in Hartlepool for array cables, Siemens Gamesa in Hull for blade manufacturing and Wick-based GMR Henderson for the restoration and development of the operations and maintenance base.This year’s CfD auction presents a fantastic opportunity to replicate these benefits in other parts of the country should SSE’s Seagreen and Dogger Bank projects be successful.
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In November we announced our plans to bring together all our renewable energy activities in the UK and Ireland under a new entity, SSE Renewables. Creating this focused business fits with SSE’s vision of being a leading energy company in a low carbon world. My aim is to motivate and mobilise our highly skilled people to focus on efficiency and innovation, ensuring that renewable energy represents value for money.Back in 2004 we first dipped our toes into the Scottish offshore wind industry with the co-development of the Beatrice Demonstrator which was ground breaking at the time. Fast forward to now and SSE currently has the largest consented offshore wind pipeline in the UK and Ireland, some 3.3GW. During that time SSE has proven its ability to deliver and operate industry leading offshore wind projects. These include (with our partners) the 504MW Greater Gabbard offshore wind farm off East Anglia completed in 2012 and the 588MW Beatrice project in the Moray Firth where well over half of the turbines have been completed.Beatrice is bringing over £1.1bn of added value to UK GDP through its construction and around 90 long-term jobs to the far north east of Scotland at the operations and maintenance base in Wick, creating real economic development in the region. Looking forward, the future is bright for the Scottish offshore wind sector. We are progressing our Seagreen Phase 1 project, located in the Forth of Firth, which could be up to 1500MW. Of course, delivering the project will be dependent on the outcome of this year’s CfD auction, which will be the most competitive and challenging yet.Offshore wind is delivering where other low carbon technologies are facing challenges. Our view is that 1-2GW deployment a year, resulting in 30GW by 2030, should be the absolute minimum the UK’s ambition for offshore wind. It is certainly not an upper limit with the healthy pipeline of projects we are seeing come through in the UK. When the Committee on Climate Change reports back on its advice regarding the implications of a net zero target, something SSE supports, it is highly likely that we will need as much offshore wind as possible, as fast as possible. In that context it is somewhat counterintuitive that the UK government has decided to cap the amount of capacity which can be successful in the next CfD auction at 6GW. The Sector Deal, which should be announced soon, will set the industry on a new footing. The offer from the Sector is clear – multibillion pound investment in low carbon infrastructure which creates good quality jobs; innovation; regeneration and upskilling in areas of the country that need it most. We need to make sure that Scotland is at the heart of that Sector Deal. Both in terms of what it can offer and how it benefits. Certainly, more can be done to support the domestic supply chain. Leasing new Scottish seabed will help to unlock more offshore development. We welcome the Marine Scotland and Crown Estate Scotland leasing work and engagement in recent months. The final Scottish Marine Plan must maximise Scotland’s potential while also balancing other interests. Sites available for lease in future rounds need to include sufficiently shallow water areas where fixed foundations can be used. Deeper waters more suitable for floating technology holds a lot of potential in the longer term but in the near-term are simply not going to be competitive. We understand the concerns expressed by some around constraints and sensitive areas, and we as an industry have and can continue to work collaboratively with Marine Scotland and stakeholders to mitigate these concerns and find a successful way forward. As set out in the Sector Deal, we need to ensure that there is collaborative approach between governments and the industry to addressing all the barriers to deployment we currently see. Because without doing so, we will struggle to achieve our collective ambitions. SSE is up for the task and we are committed to seeing offshore wind thrive in Scotland and the UK more broadly. 2019 is set to be an exciting year but is just the beginning of the next phase.
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