Scottish Hydro Electric Transmission Plc

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Scottish Hydro Electric Transmission Plc Who we are Our Responsibilities Scottish Hydro Electric Transmission Plc (SHE Transmission) Scottish Hydro Electric Power Distribution Plc (SHEPD) Other SSE Businesses As we are the only company that owns an electricity transmission network in the north of Scotland we are closely regulated by the energy regulator Ofgem. We are issued with a licence to operate and we must adhere to the terms of the licence. For this reason we are operated on a very separate basis to other SSE businesses. Our licence stipulates that we must develop and maintain an efficient, coordinated and economical system of electricity transmission. What is the difference between Scottish Hydro Electric Transmission (SHE Transmission) is part of the SSE group and owns and maintains the high voltage electricity network that serves the north of Scotland. In total we maintain about 5,000km of overhead lines and underground cables easily enough to stretch across the Atlantic from John O Groats all the way to Boston in the USA. Our network crosses some of the UK s most challenging terrain including circuits that are buried under the seabed, are located over 750 metres above sea level and up to 250km long. The landscape and environment that contribute to the challenges we face also give the area a rich resource for renewable energy generation. There is a high demand to connect from new wind, hydro and marine generators which rely on SHE Transmission to provide a physical link between the new sources of power and electricity users. SHE Transmission is delivering a major programme of investment to ensure that the network is ready to meet the needs of our customers in the future. Transmission and Distribution? Electricity Transmission is the transportation of electricity from generating plants to where it is required at centres of demand. The Electricity Transmission network, or grid, transports electricity at very high voltages through overhead wires, underground cables and subsea cables. The transmission network connects large scale generation, primarily renewables, to central and southern Scotland and the rest of Great Britain. The Electricity Distribution network is connected into the Transmission network but the voltage is lowered, by transformers at electricity substations, and the power is then distributed to homes and businesses through overhead lines or underground cables. Overview of Transmission projects Existing infrastructure Completed Under construction Potential development Advanced planning Western Isles Lairg Dounreay Mybster Loch Buidhe (Bonar Bridge) Orkney Gills Bay Spittal Shetland Mossford Moray Firth Skye Beauly Knocknagael Blackhillock Peterhead Tomatin Kintore Aberdeen Perth Denny Kincardine Kintyre Hunterston Arran

Western Isles Connection The Western Isles Connection Delivery Wheel The Western Isles Connection is one of the strategic investment projects that SHE Transmission is proposing to National Grid/SP Transmission System co-ordination develop. The link is required to transmit the energy generated by renewables National Government Policy drivers Grant consents Local Government Grant consents on the Western Isles on to the Scottish mainland and beyond and is being considered as part of the regulatory (Ofgem) approval process. Supply Chain Meet delivery timescales SHE Transmission Delivers Infrastructure Developers Provide underwriting Several elements of the proposed link have been consented through the planning process with the remaining applications due for submittal in the first quarter of 2016. The development of the project is complicated by external factors. The adjacent diagram outlines some of the other parties involved in the process to help us deliver the project. In parallel with the work being undertaken by the stakeholders listed below, we continue to progress with plans for the Western Isles Connection. Due to changes in the profile of the generation background SHE Transmission has undertaken an extensive optioneering exercise and has now identified Arnish as the most co-ordinated, economic and efficient location for siting the Island s HVDC Converter station. For that reason, we are here today to consult on our updated proposals for the Western Isles Connection. Ofgem Assess project and agree to fund Consumer Willing to pay Statutory Stakeholders (SNH, SEPA, etc) Grant consents Government The UK and Scottish Governments continue to work together to consider what additional support is required for generators of renewables on the Scottish Islands. Developers When government policy is changed, developers will need time to consider what this means for the financial viability of each of their projects. Ofgem We are working with Ofgem to provide them with the information required to help them make a regulatory decision on the funding of the link. National Grid We are working with National Grid (acting in their capacity as GB System Operator) to ensure all generators seeking connection to the grid are provided with access. Supply Chain We continue to talk to the supply chain and keep them engaged in the process.

Western Isles Connection Project History Project Background Since 2003 the total generation seeking connection to the grid on the Western Isles has exceeded the export capacity of the existing 33kV Scottish mainland link; circa 20MW. Over the last 12 years the connected and contracted volume of generation has varied between 400MW 663MW. The current connected and contracted volume is 412.6MW. Project Druim Leathann Siadar Lewis Wave Stornoway Wind Farm Muaithebheal Wind Farm Small Distributed Generation Total Size & Technology 39MW Wind 40MW Wave 129.6MW Wind 150MW Wind 54MW Wind & Hydro 412.6MW Since 2003, SHE Transmission has investigated the technical and economic feasibility of a number of reinforcement options which included the consideration of: various route options between the Western Isles and the UK mainland; the suitability of different technologies (i.e. the use of HVDC versus AC technology) and construction methods (i.e. overhead line versus cable); and various capacity ratings (e.g. 300MW, 450MW, 600MW and 1000MW). Any link to the Western Isles will require the laying of subsea cable and, subject to the eventual routeing of the link, the crossing of remote moorland on the Scottish mainland. Both of these fall within a region that can be subject to inclement weather conditions and contains environmentally sensitive areas. In addition to the increased export capacity required, the local infrastructure on Lewis is also insufficient and will need to be reinforced in order to connect the renewable generation projects which are spread across the Island. SHE Transmission has considered several options to reinforce the network that include overhead line and subsea cable reinforcements.

Western Isles Connection Project History Change in project requirements since 2012 In April 2012 the total MW figure requiring connection to the grid was 663MW, split 344MW in the south and 319MW in the north at Stornoway. The 663MW included 217MW of applications and enquiries which at the time were not certain to proceed and which were all located in the north. As such, the focus was on securing a landing point in the south, close to the majority of the connected and contracted generation. To transfer the power from Stornoway to Gravir (Grabhair) two new circuits were required; collectively known as the Lewis Infrastructure works. During the intervening period changes to the generation background have reduced the total to 412.6MW; split 150MW in the south and 262.6MW in the north. In addition, there have been enquiries totalling circa 100MW from generation developers looking to locate in the north. Implication of change With the generation now focussed in the north this presented SHE Transmission with the opportunity to rationalise the Lewis Infrastructure works to a single circuit if a suitable landing point for the subsea cable could be secured in the north. Arnish has been identified as a suitable site and, hence, is the subject of this consultation. Project Timeline Needs Case Submission 3 6 Months To Be Confirmed: Needs Case Approval Project Assessment Submission Project Assessment Approval Contract Award Construction & Commissioning Complete Dec 2020 2015 2016 2017 2018 2019 2020 Invitation to Tender issued August 2015 Chancellor s Autumn Statement November 2015 Tender Return March 2016 Planning Submission January 2016 Construction & Commissioning Complete Requirement for CfD Certainty 2021 (tbc)

Western Isles Connection Project Update Project Update The Western Isles Connection proposal is for a High Voltage Direct Current (HVDC) subsea and underground cable connection between the Western Isles and the Scottish mainland and will enable electricity generated from renewable projects on Lewis to be transferred to the Scottish mainland. The HVDC cable landing point on the Scottish mainland would remain at Dundonnell. We are proposing to reroute the previously proposed HVDC subsea cable and construct the HVDC Converter Station at Arnish Point, Stornoway in lieu of Grabhair (Gravir). SHE Transmission is considering this option following an opportunity to review generation deployment on Lewis. SHE Transmission will also require your views on necessary associated Overhead Line upgrade works to the local electrical infrastructure on Lewis to facilitate connection of the Muaithebheal Wind Farm and which forms the Lewis Infrastructure Project, which will be fully consulted on separately. The following information boards set out the details associated with our latest proposals for your comment. They also provide information on the different options being considered, including our current preferences following detailed assessment. Proposed Arnish converter station site

Converter Station Site Options Site Options This map shows the initial locations in the Arnish and Stornoway area, selected as potential sites for the converter station and substation buildings. These sites were the subject of a preliminary, high level desk-based and site assessment. Four sites were then identified as potential options to take forward to more detailed studies. Site Selection Process Proposed sites Many key considerations have influenced the selection of the preferred site: environmental, technical and economic. Of these (as indicated in the comparison table, right) site 2B at Arnish Point has emerged as the preferred site for the development of the converter and substation buildings. There are only limited sensitive features present at Arnish Point in the area surrounding the proposed site. These include a scheduled monument (dun within Loch Airinis) and a listed building (Arnish Monument). The site also has the space to accommodate the new substation required for the Stornoway area. We are now consulting with the wider community, landowners and key stakeholders on our preferred site with a view to preparing a formal planning application. The result of this consultation will inform the final development to be taken forward. Site Options Aspect Site 1 Site 2A Site 2B Site 4 Comments Environmental construction (noise, land use, habitats, visual) Environmental operation (land use, water environment, cultural heritage, visual) Technical Safety during construction, meeting the programme, availability of equipment) Site 2B is considered to have the least environmental impacts during construction given that the site is already prepared for development Site 2B is considered to have fewest environmental impacts during operation, though setting effects on the Lews Castle GDL requires to be considered in some detail Site 1 would require realignment of the access road; Sites 2A and 4 would require earthworks and new accesses; Site 2B is already prepared for development Advantages and Disadvantages A high level comparison of the four sites has been undertaken. This has considered environmental, technical, operational and economic considerations. A summary of the results of this comparison is shown here. Those options considered less preferential are shown in amber and those considered to have more potential are shown in green. On the basis of the analysis (right), site 2B has emerged as the preferred option for the proposed converter station. Operational (ease of maintenance, safety, spares) Economic (capital cost and operational cost) No major differences between operational sites The capital cost of site 2B is lower than that of the other three sites

HVDC Converter Site and HVDC Building The subsea and underground cable at the heart of SHE Transmission s proposals would use a technology called High Voltage Direct Current (HVDC). This is different to the existing island electricity network, which carries high voltage electricity as Alternating Current (AC). The HVDC Converter Station (a large substation-type installation) is required to convert AC electricity to HVDC, and vice versa, to connect the subsea cable to the Island s electricity network. HVDC is a well established technology which allows the efficient transmission of large quantities of electricity across long distances with much reduced electrical losses compared with AC. It also introduces greater flexibility and resilience in the operation of the island network and the management of variable output from renewable generation. The Converter Station would require a large area of generally level ground in the order of 250m x 150m. The majority of the equipment would be contained within a large metal clad building of approximate dimensions 150m long by 50m wide. The proposed rating of the transmission link would result in a maximum building height of around 17m. We are seeking specific feedback on the proposed site List of all relevant drawings or documents that directly relate to the current revision of the drawing of the Converter Station at Arnish Point Document to Reference: assist us with PLEASE REFER TO PLAN DRAWING the planning process. Please provide any feedback you 0513-ARNISH- BOUNDARY -01 FOR LAYOUTS. PLEASE NOTE PROPOSED BOUNDARY YET TO BE DEFINED AND MAY TAKE IN have on the proposed site and development AREAS OUTWIT through BOUNDARY our feedback form. LEGEND (Highlands & Islands Enterprise) BOUNDARY PROPOSED BOUNDARY AREA APPROX. 65,955 SQM CENTRE COORDINATE : 142567E,930412N 35000 LOCATION PLAN Scale 1:20,000 OS MAP Ref: NB43SW AC FILTERS 50000 50000 110000 HVDC CONVERTOR BUILDING 3.2 40000 TRANSFORMER List of all relevant drawings or documents that List of all relevant drawings or documents that directly relate to the current revision of the drawing directly relate to the current revision of the drawing Document Reference: Document Reference: 16000 20000 COOLERS 20000 SHARED ACCESS ROAD TO EXISTING & PROPOSED S Site Location Plan 02 21.08.15 PMR OS MAP BOUNDARY REV'D. 01 23.07.15 PMR BOUNDARY TYPE SWAPPED 132kV OHL'S REMOVED. 00 01.07.15 PF FIRST ISSUE. Rev: Date: By: Description: Revisions: PLEASE PLEASE REFER REFER TO TO PLAN PLAN DRAWING DRAWING 0513-ARNISH- 0513-ARNISH- BOUNDARY BOUNDARY -01-01 FOR FOR LAYOUTS. LAYOUTS. PLEASE PLEASE NOTE NOTE PROPOSED PROPOSED BOUNDARY Site Layout YET TO BE DEFINED Plan BOUNDARY YET TO BE DEFINED AND AND MAY MAY TAKE TAKE IN IN AREAS AREAS OUTWIT OUTWIT BOUNDARY BOUNDARY SSE Inveralmond House, 200 Dunkeld Road Perth, PH1 3AQ, UK www.sse.com Project: WESTERN ISLES CONNECTION LEGEND LEGEND (Highlands (Highlands & Islands Islands Enterprise) Enterprise) BOUNDARY Plot BOUNDARY Boundary LAYOUT PLAN PROPOSED PROPOSED Proposed Site BOUNDARY BOUNDARY Boundary Scale 1:1000 AREA AREA APPROX. APPROX. 65,955 65,955 SQM SQM (Highlands & Islands Enterprise) (area approx 65,955 sq. m) CENTRE CENTRE COORDINATE COORDINATE : 142567E,930412N 142567E,930412N ROAD ACCESS TO FROM A859 (Note: Road topo survey unavailable) Date: 21.08.2015 Date Plotted: 21.08.2015 Existing Brownfield Site C.A.D. Reference: J:\Transmission\01 Regulated Projects\LT000014\Project Files\07 - Visualisation\07.01 Drawings\SSE Working Drawings (DRAFT)\Arnish\LT14_ARNI_1104_0001_00_02_132kV Arnish Site Layout..dwg Project Number: LT000014 Location: ARNISH Title: WESTERN ISLES CONNECTION INDICATIVE 132kV ARNISH LAYOUT Drawing Status: For Information Scale: AS SHOWN @ A2 Drawn: Checked: PMR AM Drawing Number: LT14_ARNI_1104_0001 Approved: DWA Sheet No: Revision No: 00 02

Subsea Cable As a new HVDC converter station location has been proposed, Scottish Hydro Electric Transmission will be required to investigate a new route for the subsea cable. Early investigations and desk top surveys have identified a broad route corridor which will be developed into a Geotechnical, Geophysical & Environmental survey plan. The plan will be further refined then shared with On completion of the marine survey, we will start a detailed Environmental study and will consult with Stakeholders ranging from the Local Fishing Fleet to landowners and Marine Scotland. Information and feedback from the consultation will help us to confirm the final subsea cable route. Statutory Consultees including Marine Scotland and Scottish Natural Heritage. The marine survey will examine a broad corridor along the proposed cable route, in places over 800m wide. A specialist survey vessel will use several techniques to collect detailed information about the sea bed topography and the Flora and Fauna that inhabit the sea bed. These techniques include: 1. Multi Beam Echo Sounder to gather information on the water depth and the texture of the sea bed 2. Side Scan Sonar to look at objects such as boulders and wrecks 3. Sub Bottom profiling which allows us to see how deep the sea bed sediments are and how deeply the bed rock is buried 4. Magnetometers are used to look for magnetic anomalies such as abandoned cables and unexploded ordnance 5. Drop down video and still photographs are taken to help identify what species live on the sea bed 6. Cores are taken of the sea bed to allow us to look at the types of sediment that make up the sea bed

Lewis Infrastructure Upgrades to network on Lewis In association with the Western Isles Connection Project there is requirement to upgrade the existing electrical infrastructure on the Western Isles. The existing overhead trident (wood pole) line which currently connects to Harris, would require to be uprated and potentially undergrounded in some sections. Minor infrastructure works will be required in the vicinity of the Eishken road junction of the A859 to allow connection to the Muaithebheal Wind Farm. Upgrades near Stornoway Works in the vicinity of the proposed Arnish Converter and Substation will potentially include construction of three new 132kV connections to connect Druim Leathann, Siadar and Stornoway Wind Farms and the relocation of electrical equipment from the existing Stornoway substation, located adjacent to the A859. Existing circuits and local supplies connecting at the existing Stornoway Substation would be rerouted to the new converter station with the existing Stornoway substation being considered for decommissioning and demolition.

What happens next and how do I have my say? The Needs Case submission to Ofgem SHE Transmission will prepare and submit its Needs Case submission to Ofgem. The Needs Case document sets out the requirement, and business case for the Western Isles Connection. Arnish Point Planning Application We will be progressing the development of our preferred site for the Converter Station at Arnish Point with a view to submitting a planning application in January 2016. Your comments on the site and the proposal would assist us in further developing this element of the proposal. What does Ofgem do? Ofgem uses price controls to limit what the transmission and distribution companies charge. They also set targets for reliability, customer service and environmental performance. Alongside this, they encourage companies to innovate to cut costs for consumers and help the network meet Britain s future energy needs. Together, these parts work to make sure the companies operate efficiently and offer value for money. Although they limit prices, they have to let the companies charge enough to cover their costs and get a reasonable return on the money they invest. Feedback We are keen to receive feedback from the local community and other interested parties on our proposals. Please also take the time at the event to speak to members of our project team, who are here to answer any questions you may have and explain the information presented on the boards. Comments can be submitted as follows: At the exhibition today Complete a Comments Form and place it in the box provided. By post Complete a Comments Form and post it to our Liaison Manager (details below). By email Complete a Comments Form and email it to our Liaison Manager (details below). Comments forms and all the information from today s event will also be available to download from the project website at: www.sse.com/westernisles Information can also be posted out to you by our Liaison Manager upon request. Please make your comments as specific as possible in order to help us consider them in relation to our proposals. The closing date for comments for this exhibition is Friday 20 November 2015. Contact details for the Project Liaison Manager are as follows: Neil Anderson SHE Transmission Inveralmond House, 200 Dunkeld Road, Perth, PH1 3AQ Email: neil.anderson@sse.com Mobile: 07500 912 506