Ofgem’s Orkney transmission link approval
Ofgem gives approval for a necessary new electricity transmission link from Orkney to the Scottish mainland.
Image for illustration purposes.
United Kingdom, Kirkwall: Ofgem gives approval for a necessary new electricity transmission link from Orkney to the Scottish mainland.
UK’s energy regulator Ofgem gave approval for a necessary new electricity transmission link from the Orkney archipelago to the Scottish mainland, enabling the Orkney’s Community Wind Farm Project to proceed.
The regulator required a total of 135 MW of renewable generation to justify a 220 MW cable installation, and Orkney Islands Council will contribute 90 MW through its Community Wind Farm Project for said cable installation.
The Council’s wind farm project consists of three 6-turbine wind farms, located at Quanterness in St Ola, Wee Fea in Hoy and on the island of Faray.
So far, the Orkney Islands Council has spent a total of 3,2 M USD (£2.5 M) on developing the project.
The projected costs for the procurement of turbines and construction for all three sites will amount to approx. 142,4 M USD (£110 M). The current financial assessment indicates the project would generate an average real profit of 7,1 M USD (£5.5 M) per annum for the Council, which over the 25-year lifespan of the project, would equate to a profit of nearly 178,6 M USD (£138 M).
A new electricity transmission link between Orkney and the Scottish mainland could be worth at least 480,3 M USD (£371 M) to the Orkney economy, rising even further if the wave and tidal energy industry utilize the cable as well.
Source: T&D World
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