Scottish Hydro Electric Power Distribution (SHEPD) is due to start inviting tender bids to secure the future of electricity supply in the Shetland's.
The move comes as the main power supply for the islands, Lerwick Power Station, is starting to reach the end of its operational life.
During last summer and autumn, a pre-qualification process was completed which potential suppliers were invited to come forward.
The preparation of technical information from which bids will be based is now well advanced and on course to be completed by the end of April 2016.
SHEPD's new project manager, Dan Pearson, who led the development of the Meygen tidal generation project in Caithness, said: "A lot of work has already gone in to the preparation of what is a new process for Shetland to reflect the unique circumstances of the island network.
"The process is unavoidably complex in order to make it as open as possible to all technologies, so the most economic overall solution can be identified. We are making good progress and will be working hard with Ofgem over the coming months to ensure the tender documents establish a strong foundation for the future of Shetland's electricity supply."
(LM/MH)
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