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Publish Date : 19-May-2016

In view of the impending end of the operational lifespan of the Lerwick power plant, Scottish Hydro Electric Power Distribution (SHEPD) has issued invitation to 14 business entities to tender for a new energy solution for Shetland.

The life of the Lerwick power station will be ending in 2019.

SHEPD on Tuesday has revealed that bidders will have to offer their detailed proposals by this October.

The company is optimistic that it will be all set to forward its preferred proposal to the industry regulator Ofgem in spring next year.

Then the industry regulator will again discuss on the proposal prior to taking a final call.

SHEPD suffered a setback in April 2014 when its original strategy to set up a 90MW 'dual fuel' power plant at Gremista in Lerwick was disapproved by the Ofgem. After that it spent over two years to reach the current phase.

The islands lack national grid connection, and thus, the new energy solution must have capability to fulfill the local power demand constantly, which peaks at around 47MW in the winter season.

SHEPD has revealed that tenders possibly will comprise thermal power stations, renewable generators, demand side management systems, as well as electricity storage devices or cable connections.

Project Manager Dan Pearson has stressed that the issuance of the invitation to tender represents a key milestone to replace the power station in Lerwick.

Pearson added, "We have worked closely with Ofgem, our independent auditor and specialist consultants at each stage to reach this point in what is a complex procurement process.

"The level of engagement from the market has been very positive and we will be offering bidders an opportunity next month to obtain any final clarification they may need.

"We will receive bids in the autumn and the final stage of shaping Shetland's future energy system can then begin.

"This process began with our customers in Shetland and we look forward to returning to present details of the outcome ahead of the final regulatory approval process next year."

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