Ofgem has approved a proposal by Scottish and Southern Electricity Networks (SSEN) to build a 600MW subsea electricity transmission link from Shetland to mainland Scotland.
The link would allow new wind farms on Shetland to export renewable electricity to the rest of the UK and help ensure a reliable and clean supply of electricity on the islands.
Regulatory approval is subject to receiving sufficient evidence that the 457MW Viking Energy Wind Farm project planned for Shetland is likely to go ahead.
Jonathan Brearley, Ofgem CEO, said: “Ofgem’s immediate focus is to support the energy industry so it can respond effectively to the Covid-19 pandemic and ensure consumers, especially the vulnerable, are protected.
“Today’s announcement will help stimulate economic growth as the economy recovers from Covid-19, as well as unlocking Shetland’s potential to supply low-cost renewable electricity for consumers across Great Britain.”