Viking Energy welcomes Ofgem decision on SHEPD contribution to transmission link
Published on December 18th 2019
The Viking Energy Wind Farm partnership (VEWF) welcomes Ofgem’s decision to approve the contribution by Scottish Hydro Electric Power Distribution (SHEPD) towards the capital cost of the new Shetland transmission link. Yesterday’s decision follows Ofgem’s consultation on SHEPD’s proposed contribution, published in May 2019.
Viking Wind Farm is the anchor project which commercially underpins the Shetland transmission link. The contribution by SHEPD recognises the key role the link will play in meeting Shetland’s future electricity demand and the benefits it will bring in helping diversify Shetland’s economy.
Viking Wind Farm is a consented and shovel-ready project. The wind farm partners have consistently stated that a timely final decision from Ofgem on the SHEPD contribution is critical to allowing the project to move forward.
VEWF now awaits Ofgem’s decision on the revised Needs Case for the transmission link, expected in the coming months, in order to progress Viking Wind Farm in line with its planned build programme.
Despite not securing a Contract for Difference in the UK Government’s auction for low carbon power, VEWF remains fully committed to building Viking Wind Farm and intends to take a final investment decision as soon as possible.
In the meantime, enabling work on the project has already begun to ensure that it can proceed without delay when a final investment decision is reached.