The European Investment Bank (EIB) has agreed to provide GBP 500 million loan for a GBP 1.2 billion Caithness Moray transmission network project aimed at improving connections between offshore renewable energy schemes in the north of Scotland and the national power network.
The new investment includes a new 1,200 megawatt subsea cable between Spittal in Caithness and Blackhillock in Moray.
The project is led by Scottish Hydro Electric Transmission plc, a wholly-owned subsidiary of SSE plc. The first part of the loan totalling GBP 300 million was signed this week and the remainder is expected to be signed next year as the project progresses.
“This project represents the largest investment in electricity network in the north of Scotland since the hydro development era of the 1950s and we are proud to be an integral part of it; delivering value for money while reinforcing the network, allowing for the connection of new generation and providing a more resilient power supply to those who live and work in the area,” said David Gardner, Director of Scottish Hydro Electric Transmission plc.
The laying of the subsea cable and associated onshore infrastructure works are expected to support 600 jobs during the construction phase.
“Investment in energy infrastructure across the UK is essential to harness the full potential of new and future renewable energy schemes,” said Jonathan Taylor, European Investment Bank Vice President.
”The European Investment Bank is pleased to provide GBP 500 million to support essential investment by Scottish Hydro Electric Transmission plc that will ensure more efficient transmission of green energy, enable increased use of renewable power in Scotland and secure energy supply to the Highlands and Scotland’s cities. Our strong partnership with SSE over many years demonstrates our firm commitment to support ambitious energy investment that creates jobs and benefits local companies.”