Final investment decision for 443 MW onshore wind farm in UK

SSE has approved a final investment decision for the 103-turbine, 443 MW Viking onshore wind farm, in a step that will help to drive forward a green economic recovery after the coronavirus lockdown. Located in Shetland, Viking project is wholly owned by SSE Renewables having been developed in partnership with Viking Energy Shetland.

Viking will harness the excellent wind conditions in Shetland which results in an estimated load factor of around 48%. Once built it will be the largest onshore wind farm in the UK in terms of annual electricity output, which is expected to be around 1.9 TWh each year, therefore playing a vital role in contributing towards the UK and Scotland’s net-zero targets.

SSE now awaits the outcome of the consultation on Ofgem’s minded-to position to approve a 600 MW transmission connection from Shetland to the GB mainland, expected in July 2020. Final approval from Ofgem was conditional on Viking wind farm reaching a positive final investment decision which this announcement confirms. The transmission connection is critical for Viking to proceed.

SSE’s capital expenditure on the wind farm is estimated to be around GBP 580 million (USD 715 million), and this forms part of updated capital expenditure plans which are set out as part of SSE’s preliminary results on 17 June. Construction on the enabling works for the transmission link has started, with works on the wind farm starting late summer.

Viking is the anchor project that commercially underpins the transmission link, which will play a critical role in Shetland’s security of supply needs. Both the wind farm and the link will bring vital socio-economic benefits to the islands, opening up much needed and sustainable diversification of the Shetland economy.