The Shetland Islands located 70 km from mainland Scotland and 220 km west of Norway have seen a significant boost to their local economy, with £125 million invested through the construction of two major clean energy projects. These projects, spearheaded by subsidiaries of SSE plc, are nearing completion and have brought substantial economic benefits to the region.

Major clean energy projects near completion

The investments come as SSE Renewables and SSEN Transmission, both part of the SSE group, prepare for the full commercial operations of their respective projects. The Viking Wind Farm, comprising 103 turbines, is one of the key developments. Alongside this, a 260km subsea cable, connecting Shetland to the GB mainland electricity grid for the first time, has been developed by SSEN Transmission. Both projects are expected to begin operations in the coming weeks.

Significant contributions to the local economy

The £125 million investment in Shetland's local economy is divided between the two projects. The Viking Wind Farm alone has contributed £80 million, while the subsea interconnector cable project has added another £45 million. This funding has supported a wide range of local businesses, from large accommodation and transport providers to small sole traders.

Local business impact and community support

Alistair Philips-Davies, Chief Executive of SSE plc, expressed gratitude to the local partners in Shetland who played a crucial role in delivering these projects. He highlighted the importance of maximizing economic opportunities for local communities during the clean energy transition. Philips-Davies also emphasized SSE's commitment to making ongoing contributions to Shetland's economy, positioning the islands as a key hub for clean energy generation and transmission.

John Garriock, Managing Director of Bolts Car Hire Limited, spoke on the importance of these projects to local businesses. He noted that the construction of the Viking Wind Farm and the Shetland HVDC link provided a lifeline during the COVID-19 pandemic, helping his company maintain and grow its operations. The projects have supported not only Bolts Car Hire's 26 employees but also the wider local supply chain, allowing for business expansion and reinvestment.

Job creation and long-term benefits

The projects have had a significant impact on local employment, with hundreds of jobs created during peak construction phases. The Viking Wind Farm alone supported 400 jobs, while the Shetland HVDC link employed 250 people. Additionally, 35 full-time permanent roles have been established for the ongoing operations and maintenance of the wind farm.

Beyond the immediate economic impact, SSE Renewables has also established a Viking Community Fund, indexed to inflation, which is expected to contribute approximately £72 million to the Shetland economy over the lifetime of the wind farm.

Looking ahead

As the Viking Wind Farm and Shetland HVDC link prepare for full commercial operations, the long-term benefits to the Shetland Islands are clear. The projects not only provide a substantial boost to the local economy but also position Shetland as a significant player in the clean energy sector, with continued contributions expected for years to come.