Ofgem has rejected plans for an electricity cable between Shetland and mainland GB because a change in environmental legislation means it is not needed urgently. The regulator said cheaper options could now be employed and would be more flexible in changing circumstances.

The link was required because Shetland’s Lerwick power station will fail pollution standards initially due to apply from 2020. In May this year, system operator SSEN approved the new connection, to be built by National Grid and Aggreko, to replace the plant.