Scottish and Southern Energy is to push ahead with a renewable overhaul of Shetland despite missing out on a multi-million pound grant from Ofgem this week.
The Northern Isles New Energy Solutions project (NINES) was submitted to Ofgem in a bid to win a slice of the £500m Low Carbon Networks Fund, but lost out to four other initiatives.
Ofgem said that it felt “the learning from the project would not be immediately applicable to other networks”. However it added that it “would be keen to see ideas reflected in future submissions”.
SSE has said that it will now work with Ofgem over the coming weeks “to establish exactly how the key aspects of the NINES project will be delivered under alternative funding mechanisms”.
The key features of NINES involve installing smart storage heaters and hot water tanks in up to 1,000 homes; adding a new electric boiler to the existing district heating system; deploying new technology to allow more small scale renewable generators to connect to the network; and installing a 1MW battery at Lerwick Power Station.