Urgency granted for Shetland link financial contribution proposals

Two Connection and Use of System Code modification proposals looking to enable Scottish Hydro Electricity Power Distribution to contribute to the cost of the new electricity transmission link to Shetland were granted urgent status by Ofgem on 2 April.

The regulator recognised the need for certainty on CMP337 Impact of DNO Contributions on Actual Project Costs and Expansion Factors and CMP338 Impact of DNO Contributions on Actual Project Costs and Expansion Factors – New Definition of Cost Adjustment, so that the Viking windfarm can reach its Final Investment Decision (FID).

Ofgem noted that if the FID is not made in the summer of 2020, then construction of the Shetland transmission link may not be able to start until spring 2021, which would put the contracted connection date of 2024 at risk.

Ofgem also said that it would be consulting on the Final Needs Case submission for the link in the coming weeks.

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