Keeping the northern lights on: SSEPD seeks views on island power opportunity

Scottish and Southern Energy Power Distribution is seeking views from market participants on a future energy solution for Shetland, as it prepares to tender for services to maintain a secure electricity supply on the island network.

The Shetland Islands are located about 200km north east of mainland Scotland – and are not currently connected to the Great Britain electricity system.  They offer high potential for the development of renewable energy resources - wind, wave and tidal - with innovative smart grid solutions to manage their contribution to the network.  A trial project called Northern Isles New Energy Solutions (NINES) is already delivering some energy storage and domestic demand side management measures.

Current electricity provision is from oil-fired Lerwick Power Station which is nearing the end of its operational life, and gas-fired Sullom Voe Terminal Power Station  which cannot confirm availability  beyond May 2017. A new energy solution is therefore being sought to meet the islands' future electricity needs. At this stage, the structure of the future solution is open and potential bidders are being asked to feed in their initial views on this exciting opportunity.

SSEPD has been working with the energy regulator Ofgem to prepare a competitive process to seek the most economic and efficient solution from the market .  It is anticipated that services required will include reliable capacity and energy; intermittent energy; and reduction in capacity and energy.  There is also an opportunity  for hybrid or smart solutions building upon the work done via the NINES project.

Commenting, SSEPD's Director of Distribution Stuart Hogarth said:

"We are working closely with Ofgem to deliver a process that is open to all technologies.  We hope that a wide range of market participants will engage with the current consultation and recognise the opportunity which the process ahead represents.

"Subject to the feedback we receive, we expect to seek formal expressions of interest in Spring 2015.  In the meantime, we would encourage businesses to take the opportunity to read and respond to the consultation document which has been published so their ideas and views can be considered.”

The document can be downloaded from  www.ssepd.co.uk/ShetlandEnergy and responses are invited before Friday 19 December.  It is expected that the tendering process will begin in Spring 2015.  The consultation seeks feedback on a proposed delivery date for a complete new energy solution of 2019, while recognising that some bidders may want to propose earlier or later delivery dates.