Setback for sub-sea interconnector 28/6/13
Plans for a sub-sea cable to export windfarm electricity from the Western Isles to
mainland markets has suffered a setback
Energy regulator Ofgem has delayed approving the Minch interconnector because it
has not received a robust investment case.
The cable which should have been built in 2015 was already pushed back by two years
at least because grid company SSE - through its subsidiary, Scottish Hydro Electric
Transmission (SHE-T) - failed to apply for financial approval until just four weeks
ago.
Now the timescale risks slipping further because SSE has missed out vital details.
Ofgem wants grid operator SSE to fully explain why the cable costs have almost doubled.
It seeks a “detailed explanation on the cause of the increase in order to show the
proposal represents value for money for consumers.”
It also asks if there is any benefit in undertaking a new competitive tender process
for the supply of the high voltage cable.
Ofgem highlights the lack of “sufficient relevant information on the factors that
are driving the timing of the proposed reinforcement.”
It adds: “We note that there have been significant concerns previously around the
supply chain including production slots, resource availability and the impact this
could have on the overall delivery timing of the proposed link.
“We expect you to provide, with relevant supporting evidence, your assessment of
the optimal timing, taking into account the need to balance potential supply chain
issues and any potential risk for consumers associated with delivering the proposed
Western Isles link too early or too late.”
“Given the shortcomings of the current submission, it is imperative that you undertake
some further work now to provide us with the additional information that is needed
to enable us to consider the Western Isles Needs Case in a timely manner.”