Ofgem announcement potentially offers ‘green light’ for Orkney’s energy aspirations

Plans for a new electricity transmission link for Orkney have taken a huge step forward this week with industry regulator Ofgem publishing the latest of its minded-to consultations on the developments.

This latest stage will see the regulator consult widely on the proposals for the project - including the needs case i.e. why is the project needed and the way in which the project will be delivered.

This follows Orkney Islands Council being awarded planning permission for a 6-turbine wind farm project on Faray - joining similar projects at Quanterness and Wee Fea in Hoy - meaning that the 135MW threshold that had been set by Ofgem for a cable had been met.

A recent economic report - commissioned by Orkney Islands Council - found that a new electricity transmission link between Orkney and the Scottish Mainland could be worth at least £371 million to the Orkney economy, rising to £807 million if the wave and tidal energy industry makes use of the cable too.

For Scotland the figures are a minimum of £606 million, rising to up to £1.48 billion.

Ofgem previously conditionally approved a Needs Case for the new cable, requiring 135MW of new projects to trigger the 220MW cable. With just 45MW of projects previously consented, the 86.4MW that could be generated by ‘Orkney’s Community Wind Farm Project’ has made an essential contribution towards meeting this target.

Orkney Islands Council Leader James Stockan said: “We welcome today’s announcement from Ofgem on the interconnector.  With Scottish Government backed planning permission now in place for the three council-owned wind farms, this does feel like we could be starting to see a green light for Orkney’s energy aspirations.

“Our officer team is continuing to work on plans for Orkney’s Community Wind Farm Project, with further reports due in front of Elected Members this year. Given the financial challenges we are facing – and the  related need for the Council to secure its income generation opportunities -  this latest development is a welcome boost for that process.”

Orkney’s Community Wind Farm Project encompasses three 28.8MW, six turbine, wind farm developments at Quanterness in St Ola, at Wee Fea in Hoy and on Faray in the North Isles.

Relatively few suitable sites remain in Orkney for commercial scale developments and the three sites were chosen following a rigorous selection process, taking account of factors including proximity to homes and designated areas.

Planning permissions for Quanterness and Hoy were secured in December 2021, with Faray following in December 2022.

As well as generating significant income for the county, the projects will also provide an estimated annual payment of £144,000 per project into a ‘location-specific community benefit fund’, for local communities to drive transformational projects of their own.

The projects will also help the Council to meet not only its own carbon reduction aspirations, but also contribute to Scottish and UK Government targets too.

The consultation period runs until March 31 with further information available at https://www.ofgem.gov.uk/publications/orkney-transmission-project-minded-consultation