Ofgem has granted an energy generation licence for Mossy Hill Shetland, a 12-turbine wind farm development and substation near Lerwick in Shetland. Renewable power generator Statkraft has owned Mossy Hill Shetland since April last year.
Shetland Islands Council granted consent for the project in 2019, and Peel Wind Farms took Mossy Hill through the development stage before Statkraft purchased it at the same time as the Beaw Field Wind Farm, also in Shetland.
Mossy Hill Shetland will have an installed capacity of about 48MW. A new substation is now being proposed to allow it to connect to the 132kV transmission network under construction between Kergord and Gremista.
The substation development will replace two smaller substation buildings that were consented to as part of the Mossy Hill Wind Farm approval.
Statkraft has had a grid connection deal in place with National Grid, meaning the electricity system operator (ESO) must consent to the new Mossy Hill substation. While National Grid will operate the substation, the majority of it will be built, owned and maintained by SSEN Transmission.
Electricity generation licencing
Ofgem is currently holding a statutory consultation on its minded-to position on modifying the generation licence to include supplementary conditions for organisations that have been classed as generators but provide network services.
A primary consultation closed on 10 March. According to the consultation outline, procuring network services is a key element of National Grid ESO’s strategy for maintaining operability in a zero-carbon electricity system.
The procurement of services from commercial parties, as conducted by the ESO through its pathfinder tenders, has raised questions on the appropriate regulatory treatment of the assets delivering network services uncoupled from energy generation.
