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Justifying grid investment in the Scottish Islands
United Kingdom
At a glance
GHD has delivered cost-benefit analysis studies for three separate transmission reinforcement projects considering the connection of the Scottish Islands of Orkney, the Western Isles and Shetland to the mainland transmission grid.
GHD has delivered cost-benefit analysis studies for three separate transmission reinforcement projects considering the connection of the Scottish Islands of Orkney, the Western Isles and Shetland to the mainland transmission grid.
The challenge
Electricity transmission company SHE Transmission was required to submit a needs case submission to the sector regulator for three proposed electricity transmission connection projects between mainland Scotland and the islands.
The objective of each proposed investment is to unlock the vast renewable energy potential on each island, with a view to helping the UK achieve its low-carbon energy targets whilst also ensuring the investments provide value for money for consumers in Great Britain.
Our response
The GHD team was required to develop robust solutions that stand up to, and also account for the changes seen in government policy, the differing positions between UK government, Scottish government and local council, changes in subsidy arrangements, council planning decisions and competing investors. The project included:
- Development of generation development scenarios (driven by alternative political, regulatory and economic policies)
- Assessment of the affordability of renewable generation (and any political/regulatory inhibitors to its future development)
- Detailed power flow modelling to enable the calculation of energy constraints for a range of potential future generation scenarios and reinforcement options using GHD’s Constrained Energy Flow Model (CEFM)
- Detailed cost-benefit analysis modelling
- Least Worst Regrets (LWR) analysis
- Socio-economic benefits analysis
- Assessments of consumer welfare
The impact
GHD's multi-faceted cost-benefit analysis methodology and associated toolset enabled a robust techno-economic assessment of the investment options. This allowed SHE Transmission to successfully engage with the regulator, system operator, developers, landowners, councils and other interested parties on the islands reinforcements.
“GHD has been invaluable in preparing our submissions to the regulator providing innovative solutions to the myriad of complexities connecting remote islands to the mainland system. They have been a real asset to our team”