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SSE’s planned 1.2GW Caithness Moray subsea link to cost £1.1bn

Ofgem has made its final funding decision of £1.1 billion for the 1.2GW planned subsea link by SSE’s Scottish Hydro Electricity Transmission (SHE), £105 million less than the funding request by SHE transmission.

Ofgem’s final decision is £56 million more than it was in October following consultation responses and new information provided by SHE transmission.

Ofgem said its decision was to ensure “customers pay no more than necessary” and was based on a range of analysis including unit cost price and comparisons to similar projects.

The planned subsea link will connect the electricity grid on either side of the Moray Firth when completed in 2018 to transmit remote renewable power to areas of higher demand.

SSE said: “SHE transmission will now closely study the decision to assess whether the allowed costs and mechanism for recovering other future costs are, when taken together, adequate remuneration for the risks associated with the project.”