Ofgem gives backing to £371m Orkney subsea power link

A high-voltage undersea cable which will one day carry renewable energy from Orkney to the Scottish mainland has won the backing of regulators.

Power firm SSEN Transmission was told by energy regulator Ofgem on Friday that its plans to connect the islands have been provisionally approved, with up to 220 megawatts set to flow through the 35-mile cable once built.

The project is expected to cost around £371 million, and is the latest subsea cable to be given the green light by Ofgem which in December approved the Western Isles link to connect Shetland.

Orkney and Shetland MP Alistair Carmichael hailed the Ofgem backing as a “good day for the isles” but said the process of getting approval “should not have been as much as a struggle as it has proven”.

“The case for the Orkney transmission link was as plain as day as a benefit to both the isles and wider grid capacity and resilience,” the MP said.

“Now there can be no further delay – we need to see further progress as soon as possible so the link can be completed.”

The power firm formally asked to lay the cable in March 2018, but had to show to Ofgem that the extra capacity was required, with the regulator in September 2019 having set a number of conditions that had to be met before it would sign off on the plans.

But following approval for the Faray Wind Farm in December, the conditions had largely been met, with the amount of electricity due to be generated by planned renewable projects passing the 135 megawatt threshold set.

SSEN Transmission said the local electricity network had long been at full capacity and no new electricity generation could connect without upgrades.

Rob McDonald, managing director of SSEN Transmission, said Scotland’s islands groups were “home to some of the world’s greatest resources of renewable energy and we have long supported the need to provide transmission connections to help unlock their abundant potential”.

He added: “We are delighted Ofgem has provisionally approved our well-advanced plans for a new transmission link to Orkney, which is a hugely significant milestone in finally unlocking Orkney’s vast renewable potential and is the final piece in the jigsaw in connecting Scotland’s three main island groups.”

The undersea cable will connect a substation at Finstown in Orkney to one in Dounreay in Caithness, where it will then connect to the power grid.

Liam McArthur, Orkney’s MSP, said the case for improved transmission lines had “long been a compelling one” and he was pleased it had been accepted.

“Orkney has punched well above its weight in the development of renewables and has the potential to contribute significantly to meeting Scotland and the UK’s net zero ambitions. To date, however, that potential has been thwarted by limited grid capacity,” he said.

“Hopefully, the green light from Ofgem will now allow Orkney to fulfil that potential and I pay tribute to those within the local sector and other partners who have done so much in building such a compelling case.”