By Francesca Washtell, Financial Mail On Sunday

Published: 16:51 EDT, 3 September 2022 | Updated: 17:56 EDT, 3 September 2022

An ambitious project to build a giant cable to send power from the Orkney Islands into thousands of homes and businesses on the British mainland is being needlessly blocked by energy regulator Ofgem, campaigners say. 

The cable, which is being proposed by FTSE100 giant SSE, could reduce Britain's dependence on foreign supplies at a time when households face record price rises. 

The Orkneys are a hotspot for green energy projects and regularly produce more than can be used on the islands. Campaigners believe the cable would allow surplus energy to be delivered to the UK's National Grid. 

Opportunity: Energy from the islands' wind turbines could be fed to the British mainland

As a consequence, the huge rise in bills, which has been driven by global wholesale markets, could eventually be curbed because of increased UK supply. 

Ofgem has so far refused to sign off on the transmission cable. It argues SSE must prove the pipeline will pay off before it gives the green light, in order to reduce the risk of bill-payers being saddled with the costs if the project fails. 

Although the Orkneys already produce large amounts of green energy, Ofgem is insisting SSE proves it can generate significantly more before it will give the go-ahead. 

Projects that will deliver 100 megawatts of environmentally friendly power are already lined up, but the regulator has set a hurdle of 135 MW. Critics have branded that threshold 'arbitrary' and want Ofgem to scrap it. 

Advocates say wind and tidal developments in the Orkneys offer a clean, home-produced alternative to Russian gas. 

There are already thin cables running to the mainland. But they would be dwarfed by SSE's 220MW interconnector, which would be enough to power 300,000 homes. Local politicians and experts claim there are more than enough new projects under way to allay Ofgem's concerns – and that its reluctance could delay future investments. 

Neil Kermode, head of the Orkney Renewable Energy Forum, urged Ofgem to back the project, saying: 'The chance of this cable being unused is pretty much nil. The 220MW cable is going to be quite small compared with what the islands could [eventually] deliver.' 

SSE told The Mail on Sunday: 'We consider the criteria for a new link to Orkney has now been met.' The firm said it would continue talks with Ofgem. 

The MoS understands the company may consider building a second interconnector if energy generation developments continue to progress in the area. 

Alistair Carmichael, Liberal Democrat MP for Orkney and Shetland, said the project would help 'wean us off the reliance on Russian gas and Saudi Arabian oil and we would have cheaper energy and from a reliable source'. 

He added: 'This is something that Ofgem should have seen 20 years ago, but either didn't or were so dazzled by the big oil and gas companies that they chose to ignore it.' 

An Ofgem spokesman said: 'We will assess all intelligence provided to us, and remain committed to publishing our updated view on the Orkney Transmission project in due course.'

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

The comments below have not been moderated.

The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.

By posting your comment you agree to our house rules.

Do you want to automatically post your MailOnline comments to your Facebook Timeline?

Your comment will be posted to MailOnline as usual.

Do you want to automatically post your MailOnline comments to your Facebook Timeline?

Your comment will be posted to MailOnline as usual

We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook.

You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.

‘What the money news means for you’

This is Money is part of the Daily Mail, Mail on Sunday & Metro media group