£20bn investment in delivery of clean, homegrown energy from offshore wind farms across Scotland
For decades, the Highlands and Islands has played a key role in supporting Scotland’s emergence as a leader in clean energy, with hydro power kicking off decades of growth that brought reliable power to many remote communities for the first time, as well as economic benefits in the form of jobs and investment.
Now, once more, the region takes centre stage as the location for several major projects that come as part of SSEN (Scottish and Southern Electricity Networks) Transmission’s £20bn investment to upgrade the high-voltage transmission network in the north of Scotland, delivering clean, homegrown energy from offshore wind farms to homes, businesses and critical industries across the UK.
This mix of substations, onshore overhead lines and subsea cables will be crucial in achieving national clean energy and energy security ambitions, but it also offers a huge economic opportunity to the Highlands and Islands that is every bit as significant as the advent of hydro power all those decades ago.
Net zero helping level up the economy
While the UK economy as a whole is relatively sluggish, the net zero economy grew by over 10% in 2024 according to the CBI, which reports* that in Scotland alone, the net zero economy contributes £9.1 billion (about 4.9% of the country's total GVA) and supports over 100,000 full-time jobs – with nearly 1 in 25 Scottish workers employed in a net zero-related role.
This distribution of green jobs and investment across the UK, typically in nations and regions beyond London means it has a major role to play levelling up the economy, and the positive impact of SSEN Transmission’s investment is already in evidence through projects such as Sumitomo’s new cable manufacturing facility in Nigg, which will supply cable for the proposed Shetland 2 subsea HVDC Link.
Construction on the £350m facility is now well under way and Sumitomo has sought to involve the local supply chain in as many aspects of the project works as possible, with over half the construction spend in Scotland. The facility will provide employment for 150 workers, with knock-on effects expected to increase the number of indirect employment opportunities by at least double the full-time employee count.
Creating job opportunities
Meanwhile, SSEN Transmission’s plans for new onshore substation and overhead line projects will also see the delivery of new local depots across the region that will play a key role in maintaining network resilience while offering skilled job opportunities.
Last month saw the official opening of a cutting-edge £17 million operations warehouse in Inverness, a vital new hub designed to bolster the resilience and efficiency of the north of Scotland's high-voltage electricity transmission network. Built by Beauly-based Global Infrastructure (Scotland) Ltd, the project has engaged over 20 subcontractors – in total, around 350 individuals played their part in construction with a peak workforce of around 90 people per shift on site.
In total, SSEN’s current 'Pathway to 2030' programme of investment is expected to deliver £6.2bn GVA to the UK economy, £2.5bn of which will be in Scotland, supporting 20,000 jobs across the supply chain, including 9,000 in Scotland - but it’s not only in terms of jobs that the economic benefits will be felt.
Investing in communities
Community benefit funding is also set to play a key role, and the launch of SSEN Transmission’s first ever Regional Community Benefit Fund has already delivered nearly £1m of funding to projects in Highlands, including £352,000 to UHI Inverness to create a Sustainable Construction Centre delivering high-quality training to address skills shortages across the region.
With community benefit funding connected to new transmission projects expected to deliver more than £100m in the north of Scotland, this represents a substantial boost for local communities who also stand to benefit from additional funding from projects connecting to new transmission infrastructure.
Another key part of SSEN Transmission’s approach is its pledge to support the delivery of 1,000 new homes across the north of Scotland, including 400 in the Highlands, that will initially host its workforce but support local need when the projects are completed. Much like the homes for those who manned Scotland’s original hydro schemes, these properties will deliver a positive legacy to local communities in the Highlands and Islands, directly addressing the shortage of affordable housing in the region.
Secure power for generations is within reach
In recent months SSEN Transmission has submitted several planning applications for new substation projects, with applications for new overhead line projects also due for submission to the Scottish Government’s Energy Consents Unit. If approved, these projects will prove transformational for the Highlands and Islands, bringing economic benefits that will last for generations and confirming the region’s status as a clean energy powerhouse. The prize of an economic windfall that will help secure power for generations is within reach. You can read more about SSEN here.