Westray South. SSE Renewables the offshore developer. Our core purpose is to provide the energy people need in a reliable and sustainable way.

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1 SSE Renewables the offshore developer SSE Renewables (SSER) is the renewable energy development division of SSE plc. We are responsible for the development of all marine energy projects as well as the development of hydro, offshore wind and onshore wind. SSE, based in Perth, is involved in the generation, transmission, distribution and supply of electricity and the production, storage, distribution and supply of gas. SSE supplies energy to around 9.5 million customers in the UK and Ireland. In generating more than 11,860MW of electricity we are the second largest generator in the UK and the largest generator of energy from renewables. Our core purpose is to provide the energy people need in a reliable and sustainable way. Commitment and investment Greater Gabbard wind farm completed in September 2012 We are committed to tackling climate change, securing future energy supplies and helping Scotland, the UK and Ireland meet EU renewable energy targets. This commitment includes significant investment in renewable sources of energy and helping our customers transform the way they consume energy. Safety We believe all accidents are preventable, so we do everything safely and responsibly or not at all. The safety of our 20,000 employees and the contractors who work for us is of paramount importance. This applies equally to our construction sites, operational sites, stores, offices and to those working out and about across the UK and Ireland. Each of our employees is part of our Safety Family which focuses on safe work practices and identifying potential hazards that might cause harm to themselves, colleagues and anyone else who might come to harm as a result of our operations. This is actively extended to contractors and sub-contractors so that everybody can return home to their families at the end of the day safe and well. We are the UK s leading generator of renewable energy, with over 3,240MW of installed capacity from wind, hydro and biomass. We are in a five year investment program where we are investing 1.5 to 1.7 billion per year. In order to decarbonise the energy sector and meet the EU s 2020 targets, over 30% of the electricity in the UK will need to come from renewables, an increase from around 6% today. By 2020, we are on target to cut our generation CO 2 emissions by half based on the 2006 levels. Offshore developments Wave Projects Two developments with a potential total capacity of 400MW Tidal Projects Two developments with a potential total capacity of 400MW (including Westray South) Offshore Wind Five development projects, most in joint venture partnerships, having a potential total capacity in excess of 10GW Two operational projects, including a 50% share in the recently commissioned Greater Gabbard 500MW project Other Initiatives Investment in various cleantech companies including Edinburgh based wave energy developer Aquamarine Power and Fife based off-shore fabricator BiFab. In the last 10 years we have invested over 35m in total in supporting the development of the marine sector in the UK We recently began construction of Scotland s first offshore wind turbine testing facility at Hunterston, North Ayrshire.

2 SSE s Renewables Orkney marine and projects other Orkney update: marine projects SSE Renewables (SSER) has an interest in four marine energy projects around Orkney, each up to 200MW, following the world s first marine energy commercial leasing round announced by The Crown Estate in Westray South Grid and Bay of Skaill Substation Westray South is being solely developed by SSER with the other three projects being developed with joint venture partners. As far as possible activities common to all sites have been undertaken concurrently. Brough Head near-shore wave site The proposed Brough Head project is being developed with Edinburgh based wave energy developer, Aquamarine Power. A phased approach is planned with the installed capacity of the first area, at Outshore Point, being 40MW. Costa Head offshore wave site The Costa Head proposals are being developed jointly with French industrial Alstom, a major shareholder in the Inverness based wave energy developer, AWS Ocean Energy. It is proposed to develop the site in two phases, with an initial demonstrator array phase of around 10MW. Cantick Head tidal site The proposed Cantick Head site is being jointly developed with Irish-based developer, OpenHydro. It is proposed to develop the site in two phases, with the first having an installed capacity of 30-60MW. Surveys at the site have found that the energy resource to the west of the original Agreement for Lease site was more suitable for commercial development. The project team are currently working to move the boundary to the west, while maintaining the same area and a partial overlap with the original site. SSER has contracted with National Grid Electricity Transmission (NGET), the transmission system operator, to provide a connection for the Westray South project, along with the Costa Head and Brough Head projects. Based on this contract the earliest date for generating and exporting power from the site will be mid This is due to the time required for new grid infrastructure to be developed to serve Orkney, work which includes the proposed new substation, north of Bay of Skaill. This work is the responsibility of the transmission system owner, Scottish Hydro-Electric Transmission Ltd (SHE-T). The Westray South Scoping Report of October 2011 outlined possible routes that could be used to bring power from the site via subsea and onshore cables to the West Mainland substation locations which SHE Transmission were considering at that time. SHE-T have since confirmed a preferred location to the north of Bay of Skaill and are in the process of preparing a formal planning application. It is expected that the point of grid connection for the Westray South site will now be in the Tingwall area. Expected SSER and SHE-T Scope of Work Tidal array Landfall to onshore grid connection Inter-array cables SSER Scope of Work Landfall Offshore hub(s) Subsea grid export cables Crown copyright and database rights 2012 Ordnance Survey Extract from 2011 Scoping Report Grid connection (Tingwall area) New onshore grid SHE-T Scope of Work Bay of Skaill substation Subsea cable to Caithness

3 Project overview Westray South is a tidal energy project with a proposed maximum electricity generating capacity of 200MW (megawatts). This means that up to 200 tidal energy devices are being considered. The area being investigated for the development lies approximately 24km north of Kirkwall close to the European Marine Energy Centre (EMEC) tidal test site. Associated with this is a grid connection cable corridor running from the site to a proposed landfall point near Tingwall. We are required to undertake an Environmental Impact Assessment (EIA), including a Navigational Risk Assessment (NRA), and are currently engaged in site investigation and project development planning activities. We have established links with a number of the leading technology manufacturers but have not yet selected a preferred supplier. At this stage it is proposed to specify an envelope of design for the EIA and planning process with contracts for the chosen technology supplier(s) only being placed should the proposal gain planning consent. A phased approach Within the Agreement for Lease (AfL) area, which we have secured from The Crown Estate, we are working towards identifying a development zone (or zones) suitable for a commercial scale tidal project which would be built in two distinct phases. It is proposed that Phase I will be up to 60 MW with Phase II potentially bringing the total installed capacity up to 200MW. The development of Phase 2 would be informed by the experience gained in Phase 1 and wider industry learning. The proposed installed capacity of Phase I has increased since submission of the Scoping Report of October 2011 for both technical and economic reasons. Chart of Westray South tidal site (AfL in green) and area of investigation (in red) for grid connection corridor areas of interest The location, footprint and layout of devices and infrastructure will be determined through detailed planning and be informed by the EIA, NRA and stakeholder consultation processes which includes public engagement events. Approximate project timescales Phase 1 only Mid 2014 Mid Site Investigation and EIA Surveys Planning and Marine Licence Applications submitted Planning approval? Construction Completion of Phase 1 Taking the power ashore Once power has been generated it needs to be taken from the tidal energy devices to shore via high voltage cables and then on to the wider electricity network. We have done some work in the Tingwall area to identify possible landfall sites (where the cables come ashore) and grid connection points which includes identifying an area of search for a potential new substation. The electricity network on Orkney and beyond is not currently able to accommodate projects of this scale. Development of new grid connection infrastructure is being undertaken by the grid owner Scottish Hydro Electric Transmission Ltd (SHE-T).

4 Tidal energy resource: Understanding the nature of the tidal energy on the site is very important when calculating the amount of electrical energy (MegaWatt-hours) that can potentially be produced by the project. We have five distinct steps: 5 Site Yield 1 Measure 2 Model It is also an important factor when designing the devices ensuring they are built to withstand the various loads on them during operation and including extreme events. 4 Array Design 3 Energy Map Step 1 Measure Taking tidal measurements on site: To date seven Acoustic Doppler Current Profilers (ADCPs) have been placed on the seabed at various locations across the Westray site. They measure current speed and direction throughout the water column at predefined intervals. They are typically deployed for a minimum period of 28 days in order to acquire data over a full tidal cycle. Some ADCPs have also measured wave heights. Step 2 Model Preparing a computer model to predict whole site tidal characteristics: We use proprietary modelling software, known as MIKE21, developed by the Danish Hydrographical Institute (DHI). This has been used to build a 2-dimensional flow model across the whole site. The data from the ADCPs has been used to validate the flow model. Step 3 Energy map From the model, creating an Energy Map by estimating the amount of raw marine energy across the whole site: The raw kinetic energy in the water has been calculated across the whole site to identify the areas of greatest resource interest. This kinetic energy is directly proportional to the cube of the flow (velocity) which explains why high velocity sites have significantly more energy than low velocity sites. Step 4 Array design Preparing a layout of tidal energy devices across the site an array design: The level of knowledge on designs of tidal arrays is still evolving, and the experience gained from initial demonstrator projects will provide important learning points which will help inform the layout of Westray South. In addition to tidal resource a number of potential constraints need to be considered. Step 5 Site yield Calculating energy production by combining energy map, array design and technology data: Once an energy map has been produced and an initial array design selected, the information will be used with tidal device performance data to calculate the amount of electrical energy produced by each device on an annual basis. The energy output for each of the devices is then aggregated to arrive at a total annual energy production for the site. Initial results Analysis of resource data is ongoing but work done to date confirms that the tidal resource over a large part of the Agreement for Lease area would support a viable tidal energy project, subject to other economic and wider development factors. An area in the north and north-west of the AfL does not currently appear economically viable for development. This area also experiences the roughest wave conditions. From a resource perspective the key zones lie in the lower two thirds of the AfL area.

5 Site investigation At this stage in the development process we are carrying out baseline surveys, gathering data relating to the physical, biological and human environment. The knowledge gained from these surveys is used to inform the design of the proposed site from an environmental, technical, economic and wider stakeholder perspective. The physical environment The physical environment survey results provide data which is critical while seeking to identify areas where it is technically feasible to place tidal turbines and other infrastructure. It is important that the final development proposal submitted for planning approval is acceptable when measured against criteria associated with these areas. The EIA documents submitted in support of the application will contain much of this data. Side scan sonar Sonar pulses are sent out from a fish towed by the survey vessel which is flown 10-15m above the seabed. The length of shadow cast by seabed features enables their size to be determined. This includes tidal resource measurement. Information on this is presented on a separate display. Example of side scan sonar data Example of a survey vessel Magnetometer This piece of equipment is normally towed on a short cable from the side-scan sonar fish. It detects metallic objects which may be wrecks, old anchors or other large ferrous objects. Bathymetry This provides detailed information about water depth. The data can also be manipulated to provide information about seabed slopes, features and habitat types. Sub-bottom profiler Data on the depth of sediment, including identifying if there is any at all, is important when considering options for cable routing and also to inform assessment of potential effects the development might have on sediment movement. Example of sub-bottom profile data Example of bathymetry data

6 Site investigation ecology Ecological surveys provide baseline data about habitats and the species which use the proposed development areas. The area surveyed depends on the target species or habitat but it is the zone of interest for development and a buffer around this that is generally covered. A key aim of the surveys is to ascertain if there are any species and/or habitats which may be sensitive to the type of development proposed. These are broadly Birds and marine mammals Since January 2012 birds and marine mammals have been surveyed visually along a series of transect lines from a boat at approximately monthly intervals. The survey covers the Agreement for Lease area and a buffer of up to 4km as shown on the map. It takes around eight hours to complete a survey depending on the tidal conditions. The sightings for porpoise and dolphins are complemented by hydro-acoustic data collected simultaneously using towed hydrophone equipment setup to detect the distinctive clicking noises made by these species. Initial results - birds Sixteen species of seabird were regularly recorded during the first year of survey and a small number of other species were recorded more rarely. Species judged to be potentially affected are those that dive to depths where the tidal device rotors would be operating, namely shag, common guillemot, razorbill, black guillemot and great northern diver. The first year results show that the numbers of a species using the survey area can vary significantly through the year. Birds such as common guillemot and razorbill being commoner in the breeding season and others such as shag (illustrated in maps below) and great northern diver commoner in the winter termed potential receptors, in recognition of the potential for them to be affected by activities relating to the construction, operation and maintenance of the tidal array and its associated infrastructure. Although survey work for some species covers all seasons, particular attention is given to the seabird breeding season (typically April to July) and when seals are pupping (July for common seal, late autumn for grey seal). Initial results sea mammals Small numbers of porpoise were recorded, either visually or acoustically on some survey visits but no dolphin species were recorded. Very few seals were observed at sea in the survey area, however seals were often seen hauled out at a number of locations, particularly Rusk Holm, Little Green Holm and Muckle Green Holm (see map), sometimes in large numbers. Both common and grey seals were seen but the latter was far more abundant. Benthic (seabed) ecology Some indication of the benthic ecology can be gained through analysis of the geophysical data. However in order to ground truth this it is necessary to take video or camera stills of the seabed. Where there is sediment some grab samples may also be taken. Detailed survey work is due to be undertaken during Summer Tidal swept rocks on the tidal array development area January 2012 April 2012 August 2012 Sediment and some maerl on the cable corridor

7 Site Investigation shipping, navigation and port facilities Navigation requirements are a key parameter which will inform the final project design submitted for planning consent consideration. By far the highest density of movements relates to inter-island ferries which transit the area several times a day. The Westray Firth is transited by a range of shipping in terms of size and purpose from recreational craft through to deeper draught commercial traffic. The charts below illustrate the movement of ferry and general traffic across the development area of interest. Ferry routes British Crown and Seazone Solutions Limited. All rights reserved. Products licenses No Ferry Routes: Good Weather Conditions Source: OIC Marine Services response to scoping opinion request All vessel types British Crown and Seazone Solutions Limited. All rights reserved. Products licenses No Ferry Routes:Adverse Weather Conditions Source: OIC Marine Services response to scoping opinion request Based on design parameters for commercial scale tidal devices, we anticipate that the overall height of the device above the seabed would lie in the range of 23 to 27m. Detailed bathymetric surveys are ongoing but, in general, water depths at Lowest Astronomic Tide (LAT) are between 28 and 38m. A design assumption of 5m minimum clearance at LAT has been used. This is based on technical criteria such as wave loading on blades and not navigation requirements. In some places, greater clearance than this may be possible. We are in discussion with OIC Marine Services regarding requirements for ferry passage over and/or around tidal devices. British Crown and Seazone Solutions Limited. All rights reserved. Products licenses No All vessel types logged during 14 day survey in April/May 2013 Source: Anatec survey for SSER April/ May 2013 As part of the Navigational Risk Assessment the potential to utilise surface piercing hubs as markers for navigation purposes is being investigated. Local port facilities construction, operation and maintenance Port facilities at Kirkwall, Lyness and Stromness have recently benefited from significant investment in anticipation of development of commercial scale wave and tidal power projects. Given the proximity of these facilities to the proposed Westray South development it is anticipated that at least one of these ports would be utilised during the construction and ongoing operation of the project. As part of the EIA process the increase in shipping activity on the development site, and between it and the local base port, will be assessed from a navigation risk perspective. Hatston pier, Kirkwall Source: OIC Development and Infrastructure

8 Open4Business: SSE has a long history of working with, and in, communities in the Highlands and Islands. We want to continue that tradition and be: The most Open for Business company in the Highlands and Islands Best at engaging and collaborating with local and Small and Medium Enterprises (SME) communities in the Highlands and Islands A valuable contributor to the Highlands and Islands economy and communities Working in partnership with our public sector allies and our extended supply chain to maximise community benefits and local SME opportunities We are committed to maximising the benefits and opportunities for local businesses and communities wherever it is practical to do so. The benefits Facilitating economic development in the Highlands and Islands: SSE recognises that it has a significant role to play in contributing to the economic well-being and sustainable development of the communities that it operates within. SSE is therefore committed to demonstrating exemplar levels of engagement with local suppliers. To contribute to the economic well-being of the Highlands and Islands community, we have developed the SSE Open4Business Highlands and Islands web portal. The site facilitates trade and engagement between SSE and local suppliers and service providers. It provides a platform for SSE to promote opportunities originating in the region, allowing local suppliers to have visibility of SSE opportunities. Improved communications within the supplier / buyer communities Local and SME suppliers provided with visibility of business opportunities Registered local suppliers can be alerted when relevant local opportunities arise Leveraging the wider SSE supply chain to provide opportunities with SSE supply partners and with their supply chain partners Maximising local opportunities Local businesses and SMEs can register for free no charges to advertise or respond to opportunities The portal : The launch of the portal, being piloted in the Highlands and Islands, is just a starting point and our intention is that it should grow and develop to become a strong tool for creating the strongest possible local supply chain which will deliver significant economic and social benefits as a result.

9 Economic opportunities and challenges The delivery of commercial scale tidal energy projects brings both economic opportunities and challenges. Developments of this type are in their infancy and represent a step change from the single prototypes installed to date. The industry needs to mature to a level reached at present by offshore wind and projects such as Westray South are an important stage in this process. Prototype deployments in Orkney have shown the range of challenges which exist but also the economic opportunities which these have brought. Delivering a commercial scale tidal array project The guide below, based on our experience of other onshore and off-shore major projects, shows some of the activities that are likely to be undertaken during the development, construction and operational stages of a commercial scale tidal energy project such as Westray South. Stage Development Construction Operation Typical Period 3 to 5 years 2 to 3 years (per phase) 20 to 25 years Typical Sub-Contracted Activities Environmental surveys Metocean surveys Geophysical surveys Geotechnical surveys Engineering design Fabrication / manufacturing Installation Marine operations Commissioning Environmental monitoring Routine maintenance Specialised maintenance Marine operations Environmental monitoring Potential Total Spend 3M 5M 500M 900M 300M 600M Typical Contract Values 1k 300k 500k 400M 500k 10M Typical Organisations Local businesses used so far Other project considerations Environmental consultants Navigational risk consultants Site investigation services Engineering consultants Vessel owners / charters Support services Aquatera Leask Marine Xodus Group JPT Workboat Charters Roving Eye Enterprises The figures indicate the scale of financial spend, together with the types of organisations that might be involved in a project of up to 200MW. We seek to maximise the opportunities for local businesses either through direct contract placement or as sub-contractors to contractors from outwith the local area. Major Original Equipment Manufacturers (OEM s) / Tier 1 suppliers Harbours & ports operators Engineering consultants Environmental consultants Support services OEM s/tier 1 suppliers Vessel owners / charters Environmental consultants Support services Harbours & ports operators Technology Grid Ports and Harbours Westray South will not be built out with prototype technologies. We anticipate that by 2017/18 a number of leading tidal developers will have proven their devices as full scale prototypes and, in some cases, may have already installed tidal arrays at other locations. In conjunction with economies of scale, cost reduction with respect to prototypes will strongly influence the economic viability of the project. Technology development and grid connection issues are amongst the most significant factors influencing marine project development. Whilst grid connection technology is proven and available, the cost to bring new infrastructure to Orkney and ongoing costs to use this are high and place projects in the region at a disadvantage compared with similar power generation projects in other parts of the UK. Infrastructure developments, such as expanded ports and onshore support bases, are key links in developing a wider supply chain. Whilst manufacture of devices in Orkney for Westray South is unlikely, the facilities associated with construction support and long term maintenance are anticipated to be local to the site. Recent investment in such facilities in Orkney by OIC, HIE and other funding partners has demonstrated a proactive approach to this challenge. A number of economic factors will influence key investment decisions relating to the Westray South site, not least among these will be UK government policy with regard to renewable electricity generation. Subject to gaining planning approval a decision by SSER to proceed with construction of the development is unlikely to occur prior to 2016.

10 SSE s Tidal stream Orkney technology marine projects update: Tidal stream technology works in a similar way to wind turbines. The water flows over the hydrofoil sections (the blades ) and creates lift like an aeroplane wing. The blades then rotate driving an electrical generator. We are working with a number of leading tidal technology developers but have elected not to specify a Technology Most devices comprise of the following main components: The Fixings/Base holds the structure in the required location so that it can counteract the forces of the sea and TEC acting on it. The fixings for Westray South are likely to be based on drilling into the seabed, either one large hole for a monopile or multiple smaller holes for pin-piles. Alternatively, a gravity base with sufficient mass to counteract the overturning forces on the TEC may be considered. specific technology manufacturer at this stage, taking a technology neutral approach to consenting the site. It is expected that the consent application will therefore describe a range of different designs and configurations based on the features illustrated below. The Tidal Energy Convertor (TEC) converts the kinetic energy in the flowing water to electricity. We expect the Westray South devices to be 3- bladed open rotors driving an electrical generator either directly or using a gearbox to increase the speed of generator rotation to make it more suitable for electricity generation. The rotor is expected to be around 16m to 20m diameter, rotating around once every six seconds. The Structure supports one or more TEC s and, for Westray South, is expected to be based on either a monopile or tripod configuration. Depending on the site resource conditions and expected variability in tidal flow, this structure may allow the TEC to rotate and align with the tidal flow for efficient operation. Part of the structure may pierce the surface of the water to allow access to equipment or aid navigation. The following images show some of the above features on devices being developed by some of the leading industrials in the sector: Single TEC, capable of rotating to face flow, on a tripod structure, pin piled into the seabed ( Alstom 2013) Alstom 3 bladed TEC on quayside at Hatston, Orkney, prior to testing at EMEC ( Alstom 2013) 3 bladed TEC being developed by Kawasaki, Japan, possibly mounted on a gravity base and due to be tested at EMEC ( Kawasaki 2013) Illustration of single TEC on a monopile structure drilled into the seabed ( Voith Hydro Ocean Current Technologies 2013) Illustration of 3 TEC s on single structure using monopiles and pin-piles ( Siemens 2013) A typical surface piercing structure similar to that which may be used for some of the Westray TEC s to house electrical equipment and aid navigation ( Siemens 2013) Supporting infrastructure such as cables and electrical plant will also be required to collect the electrical energy generated by each device and bring it ashore for supplying into the national electricity grid.

11 SSE s Building Orkney and installing marine projects an array update: Single cables to shore per device at EMEC test site ( Alstom/EMEC 2013) The leading tidal technology developers are making good progress with testing individual prototype devices, a number of which are using the European Marine Energy Centre (EMEC), Orkney. These devices are connected to shore using single subsea cables. Installation usually involves bespoke solutions, often adopted from the offshore oil and gas industry at considerable cost. The next step for the industry is to build device arrays, developing solutions to connect a number of devices together and serial installation methods. One-off prototype foundation Barge installation ( Alstom 2013) Connecting an array This is a simple illustration of how an array of devices may be connected together. The white dots are subsea tidal energy convertors (TEC s) and the black dots show collection points for cables where electrical equipment is housed. These may also include TEC s and could be either subsea or surface piercing hubs. The pink lines represent cabling of TEC s in a daisy chain arrangement whereas the red lines show a radial arrangement. The black lines show how the collection points or hubs may be connected together and the power taken to shore. For the Westray South site, further consideration will need to be given to the tidal flows across the site and any impact on the laying of cables, and also the seabed conditions. Installation Installation of an array of TEC s and associated equipment will involve a number of different vessels, the type of which will partly depend on the selected installation method of the technology supplier. Operations will be need to be carefully managed to take advantage of site tidal and weather windows. It is expected that some form of heavy lift vessel, with a support barge, will be required to install the structure. The same or similar vessels may also be used to install the TEC s, or they may be floated out and lowered onto the structure. Specialist vessels will be required to lay cables between each TEC and back to shore. In time, as the industry progresses volume production, specialist vessels designed to operate in high tidal flow areas may be developed. Multiple tripod structures arriving for serial installation ( Alstom 2013) Installing pin piles using a drilling rig and levelling template ( Alstom 2013) Lowering a tripod structure on to pin piles ( Alstom 2013) Connecting the cable ( Alstom 2013) Illustration of surface piercing hub housing electrical collection equipment ( Siemens 2013) Illustration of subsea hub housing electrical collection equipment ( Alstom 2013) Towing a floating TEC to the EMEC test site ( Alstom 2013) Image of HiFlo-4 specialist installation vessel being developed by Mojo Maritime ( Mojo Maritime).

12 Onshore works We have requested that the transmission system operator, National Grid Electricity Transmission (NGET), provide a new grid connection point for the Westray South project in the Tingwall area. The onshore works required for Westray South, which we would have responsibility for, cover the subsea cable landfall and the onward route to the grid connection point. Landfall and onshore works area of search The plan illustrates the area of search for onshore works which we have identified. Selection of this area for further study has followed on from onshore, intertidal and offshore surveys undertaken in 2012 and This is the area within which we have requested a point of connection to the grid, which would most likely require the transmission system owner Scottish Hydro Electric Transmission Ltd (SHE-T ) to develop a new substation. Between the subsea cable landfall point and a substation in this area it is most likely that the cables would be buried. The design and consenting of grid connection infrastructure including the substation and wider works would be carried out by the transmission system owner. Crown copyright and database rights 2012 Ordnance Survey Area of search for onshore works The subsea cable carrying power from the offshore site can come ashore in two main ways by trenching where there is sufficient sediment cover, or via a horizontally directionally drilled (HDD) conduit. The coastline in the area of search for cable landfall has very little sediment cover and it is assumed that HDD techniques would be required. HDD can typically cover distances of 1km which would allow cables to exit onto the seabed well below low water and outwith the surf zone. Access tracks would be required to bring the HDD drilling rig to the drill site. Tingwall area shoreline Typical HDD rig for power cables Power cables installed at Greater Gabbard Offshore wind farm by HDD Substation Indicative substation layout with example of 132/33kV indoor substation building Although design and consenting of the substation would be carried out by SHE-T the schematic shown here provides an indication of the footprint of development which would be required to serve solely the Westray South grid requirements. A compound roughly 65m x 45m would be needed with building heights subject to detailed design work. Based on a 132kV substation building proposed by SHE-T for the Bay of Skaill a typical building height is around 11m. An example of an indoor 132/33kV substation building is shown here. In addition to the substation compound there would be a requirement for an access road.

13 Development Process The site selection process from which Westray South was identified commenced in the autumn of At this early stage regional assessments were carried out and a number of potential locations around Orkney were identified. Following site specific assessment of shortlisted locations Westray South was selected in May We are currently undertaking site investigation and project development activities which include Navigational Risk Assessment (NRA) and Environmental Impact Assessment (EIA) processes. These are required to inform the final site design which will be submitted for planning consent consideration Regional Assessment Site assessment Agreement for Lease area Development zone refinement Key decisions made since Scoping Report (October 2011) Topic Likely proposed Phase 1 capacity increased to 60 MW (was 45 MW) Development zone refinement within overall Agreement for Lease area Offshore substations Scoping indicated possibility of 1 jacket type substation for Phase 1 Rationale Further technical and economic analysis has suggested that this capacity increase is required to support a commercial development at this location First stage completed - refined area identified based on resource and bathymetry A number of small surface piercing offshore substations is likely to be required based on the results of economic & technical feasibility studies Key consents required Consent Section 36 (Electricity Act) Terrestrial planning permission (Town and Country Planning (Scotland) Act ) Scope Applicable for projects over 1MW in the marine environment (sub-tidal to Mean High Water Springs (MHWS)) Planning permission is required for any onshore element of the development. The planning application will cover project components in the terrestrial and intertidal, down to Mean Low Water Springs (MLWS) with associated overlap with the Marine License Section 36 and Marine Licence (Marine Scotland) Town and Country Planning (Orkney Island Council) Marine Licence (Marine Scotland) Intertidal Terrestrial Tidal array Marine License (Marine (Scotland) Act) All deposits on seabed such as placement of turbine array(s) or export cables Mainland SHE-T Substation Next Steps : Ongoing studies, assessments and stakeholder consultation to inform site design. A series of public events will be held prior to finalisation of the development proposal which will be submitted for planning consideration.

14 What happens next? The survey work that we are currently undertaking will continue for the coming months, gathering data to further inform the EIA which will be submitted in support of the Planning and Marine Licence Applications which we propose submitting in Your comments We value your comments and would very much like to hear your thoughts about our proposals for the Westray South Project. Your comments will help inform the development of the project. Please take the opportunity to speak to a member of staff today and complete a comments form. Copies of these exhibition boards, comments forms and other project information will be made available on the project website shortly after the events. The website address is: In order to consider your comments please ensure we receive your completed questionnaire by Wednesday 31 July If there is an aspect of the project you would like to discuss further, please tick the relevant box and complete your contact details and a member of the project team will contact you. Your contact details will only be used by us in relation to this project. We will hold a further round of public exhibitions before we submit our applications to bring you the latest project information. These exhibitions will be widely advertised nearer the time. Communication Communication with communities and stakeholders is very important to us and we strive to provide information about our projects in as open and honest a way as possible. We hope that you have found the information provided here today both useful and interesting. As we move the development forward, we will provide updates via the project website and via the new project Twitter feed which Of course, if you would like to ask questions or talk to us about any aspect of the project you are more than welcome to contact us directly by phone, or post and we will do our best to assist. In the first instance, please contact the Project Liaison Manager, Noel Cummins: Noel Cummins Project Liaison Manager Corporate Affairs SSE Inveralmond House 200 Dunkeld Road Perth PH1 3AQ (T) +44 (0) (E) noel.cummins@sse.com