SUBSEA ENERGY CABLE STUDY EXAMINED BY HIE AND PARTNERS

5th June 2007

The case for laying long distance subsea cables from renewable energy projects on Scotland's islands to areas of large population in the south is far from being clear cut under current regulation, according to a key consultants' report.

The review was prepared by TNEI for island authorities together with Highlands and Islands Enterprise (HIE) and the Scottish Executive to investigate the best options for transmitting power generated by island renewable energy projects to the mainland

TNEI described the current situation as a 'Catch-22 scenario' whereby prospective renewable energy developers require confidence that they will be able to connect to the grid, but conversely, investment in grid infrastructure is reliant on securing a guaranteed level of supply. This, claims the report, is acting as a drag anchor on the potential of the
islands' renewable energy industry.

The existing method for assessing connection requirements only allows grid planners to provide for projects currently under construction. The majority of generation capacity from wind and wave developments currently being proposed can be handled without any need for the Scotland/England interconnector to be upgraded. This, says the report, erodes the commercial case for running long underwater cables from the islands to the south of
England, despite the likelihood of increased capacity predicted to come on stream in years to come from tidal schemes.

Under the current method of basing investment on known demand, it is likely that short subsea cable connections to the mainland and reinforcement of onshore cable infrastructure presents as the most viable options for the following island groups:

Orkney - 2 x 180MW 132kV AC cable connecting from Skail Bay on Orkney to Murckle Bay, east of Thurso.

Shetland - 2 x 300MW 300Kv VSC HVDC cable connection from Dury Voe on Shetland to Cullen Bay.

Western Isles - 3 x 330MW 150Kv VSC HVDC cable connection from Lewis to Ullapool and thence along an underground cable to Beauly.

The report considered other options such as taking a cable from Shetland to electricity generating plants at Cockenzie, Hawthorn Pit, Humberside and Walpole but this did not appear cost effective. Also considered was a strategic 'bulk transfer' connection from Peterhead into England which would act as a third interconnector between Scotland and England and which may benefit some projects.

The length of time it takes to co-ordinate supply and demand between projects and transmission capacity could be minimised by planning consents and wayleave agreements being secured ahead of full investment approval for infrastructure, say the consultants.

Elaine Hanton, head of renewable energy at HIE commented: "Together with our local authority partners and the Scottish Executive we recognise the importance of securing robust grid connections from the islands. This report underlines the difficulty of trying to plan for the long term use of assets within the current regulatory environment. However, we are greatly encouraged by this week's publication by Ofgem of some innovative options for the reform of connection regulations and look forward to contributing to the consultation process to select the most effective way ahead."

Consultation submissions will be supported by evidence gained by Xero Energy, which is due to report back to the partners shortly on its investigations into the regulatory constraints impacting on island grid connections and how it sees these being best mitigated.

The report can be viewed at www.hie.co.uk/subsea-cable

 

Related Businesses

 

Related Articles

26/5/2026 : Advisory / Counseling Services

 
Argyll firm secures funding for halibut farming commercial development project

Otter Ferry Seafish Ltd is aiming to demonstrate that juvenile halibut can be grown successfully and commercially in sea cages in Scottish waters.   A £97,400 aquaculture research and development project in Argyll, is aiming to demonstrate that juvenile halibut can be grown successfully and commercially in sea cages in Scottish waters.  

13/5/2026 : Advisory / Counseling Services

 
Highlands and Islands women seize chance to build skills through HIE Impact Women

Thirty women from across the region are starting out on a new leadership programme launched by Highlands and Islands Enterprise (HIE).   The women, who come from a wide range of sectors, age groups and communities, are taking part in the 16-week HIE Impact Women programme.  

28/3/2026 : Advisory / Counseling Services

Projects share £170k to support region's small food and drink producers

Seven innovative projects to support small food and drink producers in parts of the Highlands and Islands have been awarded a total of £169,750 through the Small Producers Pilot Fund.   Seven innovative projects to support small food and drink producers in parts of the Highlands and Islands have been awarded a total of £169,750 through the Small Producers Pilot Fund.  

21/3/2026 : Advisory / Counseling Services

 
New guide to support growers with controlled environment agriculture

A new guide has been published (20 March 2026) to help growers who want to explore the potential for controlled environment agriculture (CEA) in rural and island locations.   CEA is the practice of growing crops in a controlled setting where factors like temperature, light, humidity, and nutrients can be carefully managed for optimal plant growth.  

18/3/2026 : Advisory / Counseling Services

HIE Impact Women Programme For Female Led Businesses

The Highlands and Islands Enterprise (HIE) Impact Women programme offers free support to help female-led businesses in Scotland grow.  This is a 16-week programme that includes both in-person and online sessions.  

14/3/2026 : Advisory / Counseling Services

Entrepreneurship and Gender in Scotland: Trends, Regions, and Industries

Entrepreneurship plays a significant role in economic growth, innovation, and job creation.  In Scotland, the landscape of new business creation has changed noticeably in recent years, particularly in relation to gender.  

14/3/2026 : Advisory / Counseling Services

 
Highlands and Islands entrepreneurs win big at Regional EDGE awards

Following a successful pilot in 2025, Regional EDGE, the regional arm of Scottish EDGE, returned in 2026 to offer entrepreneurs from across the region the chance to pitch for a share of the £100,00 prize fund.  Funds were allocated through a competitive process, which involved pitching to a panel of judges, and delivered in collaboration with Highlands and Island Enterprise (HIE).  

7/3/2026 : Advisory / Counseling Services

 
Reflections on a day well spent - Highland Women Growth Summit

Rachel Hunter reflects on the Highland Women Growth Summit, highlighting the challenges facing women in business, celebrating progress, and marking the launch of HIE Impact Women.   I had an absolutely energising day at the Drumossie Hotel in Inverness last Friday where over 100 women business leaders and policy makers gathered at the first ever Highland Women Growth Summit.  

4/3/2026 : Advisory / Counseling Services

Highlands and Islands Enterprise Climate Springboard

This free 6-week programme helps businesses in the Highlands and Islands understand the impact of climate change on their business and take steps to prepare for it.   What does this involve? This free 6-week programme helps businesses in the Highlands and Islands understand the impact of climate change on their business and take steps to prepare for it.  

1/3/2026 : Advisory / Counseling Services

 
New programme to strengthen leadership and growth among women-led businesses

HIE Impact Women will support 30 women leaders from businesses and social enterprises that have an annual turnover of at least £25,000.   Women in leadership roles in businesses across the Highlands and Islands are being encouraged to apply for a fully funded development programme aimed at boosting growth, enhancing leadership capability and building strong support networks across the region.