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Energy / SHEAP prepares for power station shut down

SHEAP headquarters with the Lerwick Power Station ion the background. Photo: Shetland News

THE COMPANY which operates Lerwick’s district heating system is planning to make several upgrades in response to the town’s power station being put into standby mode next year.

Shetland Heat Energy and Power (SHEAP) receives between three and five per cent of its yearly energy needs from excess heat generated by Lerwick Power Station, which is based next door to SHEAP.

But the power station will go into standby mode sometime in 2026, once the local grid is connected to the Viking wind farm and the subsea HVDC cable.

There is also a 68MW battery park being built in Lerwick to keep the lights on if there is an outage in the electricity supply set-up.

SHEAP managing director Derek Leask said the additional heat from the power station has been a “useful top-up”, especially in the winter and when the Gremista energy recovery plant (ERP) is down for maintenance.

Lerwick Power Station (LPS) provides around 1 MW in energy to the district heating system.

“We’re planning some upgrades on the network so we can use ERP heat more efficiently,” Leask said.

“That means changing some areas of town to lower-temperature loops, which reduces the amount of heat needed. It’s not a huge investment, but it makes a difference.

“LPS will still fire up once a year when the grid link is down for maintenance. We’ll try to line that up with ERP shutdowns so we can still make use of the waste heat then.”

Looking ahead, Leask said the company was continuing to engage with renewable energy companies interested in building infrastructure in Lerwick.

“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.”

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Meanwhile, SHEAP is today hosting a visit from Ofgem’s heat networks regulatory team as part of their work to prepare for the introduction of new UK-wide regulation for heat networks.

Leask said the visit aims to give the regulator first-hand insight into how SHEAP operates, the benefits of district heating for the local community and the potential impacts of forthcoming regulation on customers and operators alike.

The new framework, expected to take effect in 2025 under the Energy Act 2023, will bring heat networks under Ofgem’s regulation for the first time, introducing stronger consumer protections, fair pricing standards and improved service obligations.

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