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The cable would export electricity from the Shetland wind farms to the British consumer market
Plans to install a submarine power cable worth £ 709m between the Shetlands and the Scottish mainland have been approved on a provisional basis by Ofgem.
The energy regulator said it wanted to give the green light to the 600 MW transmission link of SSE Networks (SSEN).
This would allow new wind farms located in the Shetland to export electricity to the rest of the UK.
However, Ofgem rejected the current proposals for a 600 MW cable linking the West Islands to the mainland islands.
The energy regulator has expressed concern that the cable will be built at an estimated cost of 663 million pounds, based on the link serving two wind farm projects on the islands.
Ofgem stated that it would instead support alternative proposals for a 450 MW cable, which is estimated to cost £ 617 million, or even a 600 MW link, but at a reduced cost.
The regulator said alternative projects should "more appropriately" protect consumers from the additional costs of funding "a potentially very underutilized link".
"Best renewable resource"
The SSEN stated that the link between the Shetland Islands could be completed in 2024. He proposed to ensure that the link between the West Island and the Islands be established by 2023.
Ofgem announced that it was consulting on the approval of the Shetland cable submitted to the SSEN, demonstrating that by the end of this year, the planned Viking Energy wind farm project for the islands had been subsidized by through the UK Government's Contracts for Difference (CfD) auction.
The subsidies would protect consumers from the risk of paying for a larger bond than necessary, the regulator said.
Scottish industry Renewables welcomed the Shetland cable decision, but has concerns about the Western Isles bond.
Hannah Smith, Senior Policy Director, said: "The remote islands of Scotland have one of the best renewable energy resources in the world.
"We welcome Ofgem's strong stance on the Shetland interconnection, which has left promising projects effectively stuck in the energy market for lack of a network connection.
"The decision to approve a smaller connection to the Western Isles – which is in almost the same situation – raises questions, however, about whether current and future consumers will be denied access to the potential of consumers. Islands in renewable energy low cost generation. "
"Bad fears"
The local Comhairle nan administration Eilean Siar, who has been requesting a cable since 2005, said his support for a 450 MW cable was a "step in the right direction".
However, executive Roddie Mackay added, "I am, however, extremely disappointed with the short-term view of Ofgem's position of approving a 450 MW connection instead of 600 MW.
"I am convinced that the current pipeline of renewable energy projects will quickly fill a 600 MW cable and that Ofgem 's fears about fixed badets of about 150 MW are unfounded.
"Consumers will have an interest in that a 600 MW connection be built rather than risking the high costs of a second interconnect connector within a few years."
SNP MP Angus MacNeil of Western Isles said he was "dismayed" by the rejection of the 600 MW proposal.
He said that he would discuss the issue with Ofgem officials.
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