29.11.2016 Views

i

SSEInterims1617

SSEInterims1617

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

sources. This makes SSE the largest wind energy generator in the SEM. The company also trades<br />

across the interconnectors between Ireland and GB.<br />

In the six months to 30 September 2016, SSE's 464MW Great Island CCGT unit (grid connection<br />

capacity set at 431MW) exported 1.4TWh of electricity, up 41% on the same period in 2015. The<br />

improved generation performance was due to increased power demand and prevailing market<br />

conditions, including the improved position of gas plant relative to other generation types.<br />

On 30 September 2016 Ireland’s national grid operator EirGrid announced that the 500MW East<br />

West Interconnector (EWIC) between Ireland and GB had gone out of commission due to a fault that<br />

occurred during annual maintenance. EirGrid estimates a return to service by the end of February<br />

2017.<br />

Delivering and developing new capacity for electricity generation<br />

Construction of the two-phase 174MW (SSE share 120MW) Galway Wind Park project is ongoing and<br />

it is due to be commissioned by the end of 2017. The project will qualify for REFIT II support. In<br />

Northern Ireland, construction of both the Tievenameenta (35MW) and Slieve Divena II (18MW)<br />

onshore wind farms is progressing well. Both projects will be operational in 2017, meeting the<br />

criteria for Northern Ireland’s RO grace period.<br />

SSE continues to advance its planned Doraville wind farm development (up to 115MW), a planning<br />

application for which is currently before Northern Ireland’s Department for Infrastructure. This<br />

project, if developed, will not qualify for the RO.<br />

Engaging in the I-SEM reform process<br />

Reform of the SEM to comply with the EU Electricity Target Model continues, with regulators in<br />

Ireland and Northern Ireland progressing the Integrated SEM (I-SEM) project due for introduction by<br />

the end of 2017. In July, regulators said they considered it very unlikely that the UK decision to leave<br />

the EU would have any significant impact on I-SEM programme delivery. In addition, the UK Prime<br />

Minster has advised the Northern Ireland First Minister that resolving the SEM will be a priority for<br />

the UK Government. For its part SSE continues to be fully involved in all stages of the ongoing new<br />

market design and implementation process.<br />

Gas Production<br />

Gas Production is responsible for the efficient delivery of gas from the offshore gas fields in which<br />

SSE has a shared ownership.<br />

Producing from UK Continental Shelf assets<br />

Total output in the six months to 30 September 2016 was 314.5 million therms (5.11 mmboe) of gas<br />

and 0.47mmboe of liquids, compared with 191.3 million therms of gas (3.11 mmboe) and 0.03<br />

mmboe in the same period last year. This rise in production was due to the start up of the Laggan<br />

field in February 2016, although there has also been a natural decline in output from existing fields.<br />

The Greater Laggan Area acquisition is expected to mean SSE’s average annual volumes of gas and<br />

liquids produced will be at a higher level than those it reported in previous years, with a forecast<br />

average production of around 500million therms (8.1mmboe) of gas and 0.85mmboe of liquids per<br />

year in the five years to March 2021.<br />

Delivering security in Gas Production<br />

SSE has a 20% interest in the four gas fields and surrounding exploration acreage approximately<br />

125km north west of the Shetland Islands, collectively known as the Greater Laggan Area; and a 20%<br />

interest in the new Shetland Gas Plant. Total E&P UK Limited is the operator of, and owns a 60%<br />

stake in, these assets. The remaining 20% is owned by DONG Energy.<br />

Gas production started in February 2016 from the Laggan field and in August 2016 from the Tormore<br />

field which have reached peak production of up to 90,000 boe a day. This will help to secure energy<br />

for SSE’s customers and help meet the needs of SSE’s gas-fired power stations, contributing to<br />

security of electricity supply. The nearby Edradour and Glenlivet fields are expected to start<br />

26

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!