Ofgem confirms £642m allowance for Shetland link

Ofgem has announced today (Tuesday) it is setting an allowance of £642 million of capital expenditure to link Shetland with the national grid in a Europe-wide first.

The high voltage direct current (HVDC) link will connect the isles to the GB energy system for the first time, enabling the connection of renewable electricity generation, underpinned by the Viking onshore windfarm currently being built by SSE Renewables.

The link aims to help secure Shetland’s future security of supply, reducing its dependence on thermal power generation, further supporting decarbonisation goals and the delivery of net zero.

SSEN Transmission, the electricity transmission owner for the north of Scotland and part of the SSE Group, has welcomed the decision.

Upon completion, the Shetland link will connect to the existing Caithness-Moray HVDC link, becoming Europe’s first multi-terminal HVDC system and the world’s first outside of China, a critical step in developing the HVDC grids of the future.

Construction of the Shetland link, which started last summer, continues to make progress with the project remaining on track for energisation in 2024.