Scottish and Southern Energy Power Distribution (SSEPD) is preparing to tender for services to maintain a secure electricity supply on the island network.

The organisation has added that it wants to hear from market participants on a future energy solution for Shetland.

The Shetland Islands are located around 200km to the north east of mainland Scotland, but are not currently connected to the electricity network in the UK.

The islands over the potential for the development of renewable energy resources such as wind and wave, with innovative smart grid solutions to manage their contribution to the network.

A trial scheme – Northern Isles New Energy Solutions (NINES) – is already delivering some energy storage and domestic demand side management measures, SSEPD has said.

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Currently, electricity provision comes from the oil-fired Lerwick Power Station but is now nearing the end of its operational life, and the gas-fired Sullom Voe Terminal Power Station, but this facility is unable to confirm availability after May 2017.

As a result, a new energy solution is being sought to meet the future electricity needs of the islands. For now, the structure of the future solution is open, and potential bidders are being asked for their opinions on the issue.

It is anticipated that the services needed will include reliable capacity and energy, intermittent energy, and reduction in capacity and energy. It is understood there is also an opportunity for hybrid or smart solutions which would build on the work achieved via the NINES project.

Stuart Hogarth, SSEPD's Director of Distribution, said: "We are working closely with Ofgem to deliver a process that is open to all technologies. We hope that a wide range of market participants will engage with the current consultation and recognise the opportunity which the process ahead represents.

"Subject to the feedback we receive, we expect to seek formal expressions of interest in Spring 2015. In the meantime, we would encourage businesses to take the opportunity to read and respond to the consultation document which has been published so their ideas and views can be considered."

More information can be found on the SSEPD website here.

(JP/IT)