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Funding call to connect Shetland BESS to mainland grid

Posted on 21 Aug 2025. Edited by: Colin Granger. Read 974 times.
Funding call to connect Shetland BESS to mainland gridZenobe, a UK owner and operator of grid-scale battery storage, has announced plans for the Shetland Standby Project. A 68MW battery energy storage system (BESS) in Lerwick, it will be ‘the crucial next step’ in connecting Shetland’s distribution network to the mainland grid and maintaining security of supply for Shetland’s homes and businesses with reduced emissions. This BESS will allow Lerwick Power Station to operate in standby only, thus cutting emissions and use more renewables on the islands.

The Shetland Standby Project, which is scheduled to go live in 2026, will have advanced technology like grid-forming inverters and AC choppers — the latter offering a means of ‘strengthening the grid’ by helping absorb excess wind power during shutdowns.

Zenobe, which has has secured around £60 million of non-recourse project finance debt from energy transition lenders Natwest, Lloyds, and Siemens to fund the buildout of the project, says the site marks another milestone in the company’s Scottish battery portfolio, which now includes over 1.2GW of capacity either live or under construction and is supporting the UK Government’s mission to achieve a decarbonised power grid by 2030.

Security of supply

James Basden, Zenobe’s founder and director, said: “This project combines a battery with an AC chopper in Shetland to maintain security of supply, ensuring homes and businesses continue to receive the power they need in the event of a transmission system outage, while reducing emissions and using more renewables in Shetland. It marks an important step in the islands’ transition to a clean and resilient energy system that will reduce reliance on fossil fuels on the island network.”

Nathan Coote, Scottish and Southern Electricity Networks (SSEN) distribution’s project manager said: “We have long been committed to delivering a sustainable, whole system solution to decarbonise Shetland’s grid while maintaining security of supply. This standby project, once completed, will mean that communities in Shetland will have the reassurance that during a planned outage, or in the event of there being a temporary issue with Shetland’s connection to mainland Scotland, power to homes and businesses will be maintained seamlessly, with the battery providing supply while Lerwick Power Station is safely brought out of standby.”

Zenobe began operations in 2017 and now employs more than 300 FTEs (full-time equivalents) with a wide range of skills. These include electrical engineering, software development, computer sciences, and financing.