UK energy company SSE is to pull out of one of its projects, the BBC has reported.

The project involved building a subsea electricity cable linking Scotland and Norway.

SSE said it would "no longer have a financial involvement in the NorthConnect project", as it turned its focus to its core markets within Britain and Ireland instead. The firm added that a lack of clarity on interconnector regulation contributed to its final decision.

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The company said it also plans to make an announcement in the following weeks regarding its Swedish portfolio. It is expected SSE will dispose of its interested in Scandinavia.

The remaining partners in NorthConnect are Sweden's Vattenfall and Norwegian companies E-CO Energi, Agder Energi and Lyse have said the withdrawal of SSE did not affect their plans to continue with the project.

The cable is expected to start operating in 2020.

Britain is already connected to France, Ireland and the Netherlands, and is currently evaluating other links to Belgium and Denmark. The government is relying on the construction of further interconnectors to help the country meet future electricity demand.

(JP)