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SSEInterims1617
SSEInterims1617
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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 />
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