Decision on Shetland New Energy Solution

Publication date
30th November 2017
Information type
Policy area

Shetland’s electricity supply is largely generated from Lerwick Power Station, which is approaching the end of its operational life. A joint bid by NGSLL-Aggreko won a competitive process run by SSEN to provide an efficient solution for Shetland’s energy future. In July, we published a consultation on NGSLL-Aggreko’s costs and received 15 responses from a wide range of parties.

Since we went out to consultation there have been two important developments which have impacted on the assessment of the best energy solution for Shetland, notably a change to a document which sits under the IED and the UK Government’s announcement of the planned timetable for the next Contracts for Difference (CFD) round.

This document sets out our decision to reject the proposed costs of the solution based on the information now available to us. Our decision is not a reflection of inefficiency in the NGSLL-Aggreko proposal. Rather, it reflects the changes explained above, which mean that a more cost-efficient option is now available.