The United Kingdom energy regulator Ofgem is set to approve plans for the 600 MW subsea transmission Shetland Link high voltage direct current (HVDC) power transmission project, which will connect Kergord on the Shetland Isles to Caithness on the Scottish mainland (UK). Ofgem expects to make the final decision by mid-2019.
The Shetland link project could break ground in 2020 and be commissioned in 2024 at a total cost of £709m (€827m). It would connect into the Caithness-Moray transmission line currently under construction. The project is vital as remote islands such as the Shetlands are allowed to compete in the next Contracts for Difference (CfD) auction in May 2019. The commissioning of the project would be a key requirement to the success of Shetland renewable developers in the upcoming CfD auction. The Shetland Islands are currently not connected to the main Great Britain transmission system and operate as an island network, while local needs are met from local power generation. There is no new available capacity to connect new power generation on the islands and a link to the mainland is required to enable the development of future renewable projects.