SHEAP Prepares for Shift as Lerwick Power Station Goes Standby

Shetland Heat Energy and Power (SHEAP) is preparing for a significant transition as the Lerwick Power Station (LPS) is set to enter standby mode in 2026. This change comes as part of a broader strategy that includes connecting the local grid to the Viking wind farm and a subsea high-voltage direct current (HVDC) cable. Currently, LPS supplies between three and five percent of SHEAP’s annual energy needs through excess heat, which has been particularly valuable during the winter months and when the Gremista energy recovery plant (ERP) is undergoing maintenance.

In the face of this upcoming change, SHEAP’s managing director, Derek Leask, emphasized the importance of LPS as a “useful top-up” for the district heating system. The power station contributes approximately 1 MW of energy to SHEAP’s operations. “We’re planning some upgrades on the network so we can use ERP heat more efficiently,” Leask stated. This includes converting some areas of Lerwick to lower-temperature loops, which will decrease the overall heat demand.

SHEAP is also adapting its strategy to ensure a reliable energy supply. LPS will remain operational, with plans to activate it once a year during maintenance periods for the grid connection, aligning these times with ERP shutdowns to maximize the use of waste heat.

Investments in Renewable Energy Infrastructure

Looking forward, SHEAP is actively engaging with renewable energy companies interested in developing infrastructure in Lerwick. The goal is to create additional sources of waste heat, ultimately enhancing the sustainability and resilience of the district heating network. Leask expressed optimism about these future projects, stating, “The hope is that in time these projects will give us additional streams of waste heat for the network, which will make it even stronger and more sustainable.”

In conjunction with these developments, SHEAP is hosting a visit from Ofgem’s heat networks regulatory team. This visit is part of the preparation for new UK-wide regulations for heat networks, which are anticipated to come into effect in 2025 under the Energy Act 2023. The regulatory framework will introduce stronger consumer protections, fair pricing standards, and improved service obligations for heat network operators.

Leask noted that the visit aims to provide the regulator with first-hand insight into SHEAP’s operations, highlighting the benefits of district heating for the local community and the potential impacts of forthcoming regulations on both customers and operators. This proactive engagement reflects SHEAP’s commitment to ensuring that the transition to new energy sources is smooth and beneficial for all stakeholders involved.