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Delayed sub-sea cable setback for wind farm plans    1/11/12

Many millions of pounds will be lost to the fragile Western Isles economy with a delay of a major sub-sea cable required to export renewable electricity to the mainland.

Work on the proposed underwater link between Lewis and Ullapool was due start soon and scheduled to be ready in 2015.

Soaring costs, fuelled by rising global demand for copper, has almost doubled the price of the cable to £700 million. Work is now pushed back by over a year and will stall the construction of giant wind farms on Lewis.

Scottish and Southern Energy (SSE) which operates the national grid in Scotland warns of “real potential” of further delays to the new date of late 2016 .

It was previously estimated that the rising cable costs would not reduce for another two or three years.

One small local developer reckoned that each year’s delay to just a number of community schemes would lose £2.5 million to the islands’ economy. The impact on lost community benefit from the larger private schemes would easily double that figure.

SSE said the 50-mile long inter-connector would now cost £700 million to link Western Isles wind farms into the new Beauly to Denny overhead transmission network.

The onshore converter station and transmission cabling has risen to £75 million.

A SSE spokesperson pointed out the charge to export electricity down the link will now be more expensive.

She said: “The increased cost of the link will have a consequential impact on transmission charges and, hence, the affordability for generators.”

She highlighted giant windfarm developments on Lewis will be required to give a “further commitment,” understood to mean a financial payment, in spring next year, “in order to meet the already challenging programme.”

Electricity regulator Ofgem still has to approve the cable. SSE said it made the first stage of a funding request to the Ofgem in April but now is forced to reassess its business case.