SSEN Transmission, a subsidiary of UK energy group SSE Plc (LON:SSE), has chosen the consortium of Japan's Sumitomo Electric Industries Ltd and its subsea cable installation partner, Van Oord Offshore Wind UK, as the preferred bidder for the proposed Shetland 2 subsea link.
In response to the notification, Sumitomo Electric Industries has initiated formal construction of its subsea transmission cable factory at the Port of Nigg in the Scottish Highlands. These developments were announced on Tuesday during a groundbreaking ceremony.
The Shetland 2 high voltage direct current (HVDC) link, according to Sumitomo Electric's announcement, is a pivotal project supporting the commencement of construction of the cable factory. This 330-km (205-mile) connection between Shetland and the mainland is set to deliver 2 GW of renewable electricity to Great Britain's network.
Rob McDonald, managing director of SSEN Transmission, expressed anticipation regarding the forthcoming contractual negotiations, stating, “We now look forward to concluding contractual negotiations with the Sumitomo Electric Van Oord Consortium in the coming week and months and in parallel, continuing constructive engagement with Ofgem, the UK and Scottish Governments, and wider stakeholders to establish the regulatory framework for Shetland 2 and the wider ‘Beyond 2030' network investment recommendations.”
Shetland 2 is poised to facilitate the integration of three ScotWind offshore wind farm sites adjacent to Shetland.
Justin Tomlinson, UK Government Energy Security and Net Zero Minister, emphasized the significance of the project, remarking, “A second undersea cable connecting Shetland to the Scottish mainland will add 1.8 GW of clean wind-generated power to our grid.”
Mairi McAllan, Scottish Government Energy Secretary, highlighted the economic benefits, stating, “The Shetland 2 contract would underpin Sumitomo's decision to locate its first European cable factory at Nigg and support hundreds of jobs in the Highlands.”
