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Ofgem sets GBP642 million allowance for Shetland Link [free access]

December 1, 2021

British energy regulator Office of Gas and Electricity Markets (Ofgem) has set an allowance of GBP642 million of capital expenditure for the 600 MW high voltage direct current (HVDC) Shetland Interconnector project. It is being developed by Scottish Hydro Electric Transmission (SHET) – the electricity transmission owner for the north of Scotland and part of Scottish and Southern Energy Networks (SSEN).


The project includes a 600 MW high voltage direct current (HVDC) line stretching from Kergord on Shetland to Noss Head in Caithness on the Scottish mainland. It will run about 260 km, all but 10 km of which will be undersea. It also includes the 320/132 kV substation and HVDC convertor station proposed at Upper Kergord on Shetland; and a Caithness HVDC switching station, necessary to facilitate connection to the existing transmission system at Noss Head in Caithness.

The link will connect the Shetland islands to the UK’s national grid for the first time, enabling the transmission of renewable electricity, including from the Viking onshore wind farm currently being developed by SSE Renewables.

Once completed, the Shetland Link will connect to the existing Caithness–Moray HVDC link and become Europe’s first multi-terminal HVDC system. Construction on the project commenced in the summer of 2021 and is scheduled for completion in December 2023, while energisation and full commissioning are expected by 2024.