The British energy regulator Ofgem has proposed changes to a plan brought forward by Scottish and Southern Electricity Networks (SSEN, part of the SSE Group) for the 220 MW Orkney-Scotland high voltage subsea power transmission project. SSE had asked Ofgem to approve the project on condition that by the end of 2019, 70 MW of generation capacity on Orkney committed to use the link once it is built.
The Ofgem estimates that the current plan is does not protect consumers from the risks of paying much more than required. It will approve the project only if, by no later than December 2019, at least 135 MW of new power generation capacity on Orkney has either secured planning consent and finance or been awarded a Contract for Difference (CfD) in the government’s 2019 auction.
The current version of the transmission link would comprise a single 220-kV subsea cable scheduled for completion in October 2022, followed by a second similar cable once further generation has committed and if it is labelled as economic. It would help new wind parks and tidal power projects on the Orkney island to send electricity to the British mainland. The total cost is estimated at approximately £260m (€290m).
The Orkney islands are estimated to have a significant renewable energies potential, in particular regarding tidal, onshore and offshore wind. Following the development of small-scale renewable generation projects in the recent years, the island's power network is operating at full capacity and no additional power generation capacity can connect without significant network reinforcements.