Final determination on Shetland enduring solution re-opener application
Summary
Ofgem final determination on the Shetland enduring solution re-opener application. Determines allowed expenditure on the long-term transmission solution to connect Shetland to the GB system.
Why it matters
Shetland is the last large GB demand centre to lack an HVDC transmission link. The 'enduring solution' (the subsea HVDC cable) replaces diesel-generation backup with grid connection. Costs socialised through TNUoS; benefits accrue to Shetland consumers through lower long-run electricity costs and reduced curtailment of Shetland-area renewable generation.
Areas affected
Related programmes
Memo
Final determination on Shetland enduring solution re-opener application | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Final determination on Shetland enduring solution re-opener application Publication type: Decision Publication date: 9 December 2024 Topic: Electricity distribution, Energy network price controls Decision for: Draft determination on Shetland enduring solution re-opener application Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn As part of the RIIO-2 price control, network companies can apply for additional allowances via re-opener uncertainty mechanisms. In January 2024, Scottish Hydro Electric Power Distribution submitted its 'Shetland Standby Project' under the Shetland Enduring Solution Re-opener. In September 2024, we consulted on our draft determination and associated draft direction for this re-opener application. Having considered all responses to the consultation, this document sets out our decision to award allowances for Scottish Hydro Electric Power Distribution's 'Shetland Standby Project'. Concurrent with this decision, we are publishing a formal direction to implement our decision in Scottish Hydro Electric Power Distribution's RIIO-2 licence. Update 10 February 2025 There were some minor errors in the published final determination and accompanying direction. It was therefore necessary to make changes to these documents. You can find the corrections we made in the attached erratum notice. Alongside this erratum notice, we have published a revised final determination document and associated direction. Main document Revised - Shetland Enduring Solution determination [PDF, 131.72KB] Subsidiary documents Revised - Shetland Enduring Solution direction [PDF, 115.35KB] Erratum notice Shetland enduring solution [PDF, 88.14KB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close