SSEN Transmission has selected a consortium comprising Sumitomo Electric Industries and its cable installation partner Van Oord Offshore Wind UK as the preferred bidder for the proposed Shetland 2 project.

Shetland 2 is a 525kV High Voltage Direct Current (HVDC) subsea cable project, planned to connect ScotWind’s offshore wind farms with the main Great Britain (GB) transmission system.

The need for a second HVDC link from Shetland to the main GB transmission system has recently been confirmed by independent electricity system operator National Grid ESO, as part of its ‘Beyond 2030’ plan.

According to the plan, SSEN would invest £5bn in the north of Scotland by 2035 to strengthen the region’s energy infrastructure.

In addition to connecting three ScotWind offshore wind farm sites to Shetland, Shetland 2 will also support decarbonisation and energy security ambitions, said SSEN Transmission.

SSEN Transmission managing director Rob McDonald said: “Sumitomo’s investment in a new cable manufacturing facility in Nigg will help deliver a homegrown supply chain to help support our energy security and net zero infrastructure requirements.

“This is great news for the Highland economy and will support hundreds of skilled jobs in the region, helping unleash the economic potential the clean energy transition presents for the north of Scotland.”

In a separate development, Sumitomo Electric has started construction on a new, advanced subsea transmission cable factory at the Port of Nigg, Scotland.

The Japanese company plans to commission the new subsea cable factory in 2026.

The new facility, planned to be built with a £350m investment, will supply critical elements for the UK electricity grid and connect renewable energy production facilities to the grid.

It will create more than 150 highly skilled jobs in the Scottish Highlands and use the local supply chain for the production of cables and construction of transmission cable systems.

Furthermore, the new factory would provide critical electricity transmission infrastructure to connect and deliver renewable energy to the UK and help achieve the UK Net Zero Target.

Sumitomo Electric Group president Osamu Inoue said: “I am pleased to announce the commencement of this innovative High-voltage cable factory in Scotland.

“Transmission cables are key essential infrastructures to make the so-called Energy Transition to renewables into reality.

“I believe, this factory will make good contributions towards the establishment of local supply chains and to realise UK and Scottish Governments’ net zero initiatives.”