U.K. Regulator Rejects SSE's GBP1.33 Billion Proposals for Transmission Links
23 October 2019 - 7:30PM
Dow Jones News
By Adria Calatayud
The U.K. energy regulator said Wednesday that it has rejected
SSE PLC's (SSE.LN) 1.33 billion-pound ($1.72 billion) proposals for
Shetland and Western Isles transmission links to mainland
Scotland.
Ofgem said it encouraged Scottish and Southern Energy Networks,
a subsidiary of the FTSE 100 energy company, to submit revised
proposals which provide greater certainty on the future of wind
farms that support the need for these links. The company's current
proposals failed to meet conditions for approval, Ofgem said.
The regulator said it was unable to approve SSEN's plan to build
a 600 megawatt subsea electricity transmission link to mainland
Scotland from Shetland as the project was based on a wind farm
securing subsidies from the U.K. government. The wind farm failed
to get those subsidies in last month's auction, Ofgem said.
In March, Ofgem said it was minded to approve the estimated
GBP709 million link.
For the Western Isles, Ofgem said it was unable to give green
light to SSEN's proposal to build a 600 megawatt transmission,
GBP623 million link to connect them to mainland Scotland. Only one
of the two wind-farm projects that supported the link received
subsidies from the U.K. government.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
October 23, 2019 04:15 ET (08:15 GMT)
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