Government regulator Ofgem have said they are “unable to approve” plans to build a subsea electricity transmission cable between Shetland and the mainland, in a further blow to the Viking Energy windfarm development.
This comes only a month after Viking failed to win government backing in the latest round of Contract for Difference auctions.
In a statement released on Wednesday morning, Ofgem announced that the “award of these subsidies would have provided confidence that the wind farm is likely to progress, and protection for consumers from the risk of paying for an underutilised transmission link to the Shetland Isles.”
In March, Ofgem said that they were minded to approve the estimated £709 million link between Shetland and the mainland.
They have said they “would welcome revised proposals from SSEN including providing greater certainty on the future of the windfarms”.
This latest setback is also a blow to the proposed Energy Isles 29 turbine windfarm development in Yell, which is also reliant on a transmission cable between Shetland and the Scottish mainland going ahead.
More reaction in this Friday’s edition of The Shetland Times.