Scotland’s clean energy zest grows as it signs off on new subsea cable link and Banniskirk Hub

November 28, 2025, by Melisa Cavcic

Scottish transmission system operator (TSO) SSEN Transmission has collected all permissions needed for a high voltage direct current (HVDC) subsea cable link between Sinclair’s Bay in Caithness and Rattray Head near Peterhead, thanks to a marine license for the subsea electricity transmission project and a planning consent for a clean energy project that will see the construction of a new 400 kV substation and HVDC converter station in the Spittal area.

While revealing that the Spittal to Peterhead subsea cable link has received a marine license from the Scottish Government Marine Directorate, SSEN Transmission explains that the project will unlock significant opportunities for local businesses in the north of Scotland. The TSO elaborates that key contracts have been awarded to John Gunn & Sons, based in Caithness, and Nicol of Skene, based in Aberdeen, to construct the onshore cable sections at Spittal and Peterhead, respectively.

David Inge, Offshore Development Portfolio Manager at SSEN Transmission, commented: “Securing this marine licence marks an important milestone for our programme to strengthen Scotland’s transmission network and support the transition to cleaner, more secure energy. This progress isn’t only about national ambitions; it reflects our commitment to bringing lasting opportunities to the communities where we work.

“Appointing Caithness-based John Gunn & Sons and Aberdeen-based Nicol of Skene demonstrates how we are ensuring local businesses benefit directly from this investment. In developing our plans, we have spent considerable time engaging with coastal communities, marine users and a wide range of partners across Caithness and Aberdeenshire. Their insight has played a key role in refining our proposals and ensuring they are shaped by those who know the area best.”

This 166-kilometer, 2-GW subsea link between Sinclair’s Bay in Caithness and Rattray Head near Peterhead is expected to play a major role in Scotland and the UK’s journey towards a secure, clean energy future by connecting into the recently consented Netherton hub near Peterhead in Aberdeenshire and the proposed Banniskirk Hub in Caithness.

The main construction works are expected to begin following final design and procurement work. This was subject to planning consent for the Banniskirk Hub, with completion targeted to align with the UK’s 2030 clean power ambitions. As the planning consent has been granted for this clean energy project, all permissions are now in place for the Spittal-Peterhead subsea link to begin.

The decision by Highland Council’s North Planning Applications Committee follows more than two years of development and extensive community and stakeholder engagement by SSEN Transmission. The Banniskirk Hub will connect to the proposed 400 kV overhead line between Spittal and Beauly, as well as the existing Spittal 275 kV Substation.

This project will feature a new outdoor 400 kV air insulated switchgear (AIS) substation and an HVDC converter station enabling the transfer of offshore renewable energy to demand centers across the country via the Spittal–Peterhead subsea cable link. With consent now granted, construction of the Banniskirk Hub is expected to begin early next year.

Earlier this week, SSEN Transmission became the first business to sign the Highland Social Value Charter, committing to deliver a detailed set of benefits for Highland communities through its investment to upgrade the electricity grid, including £1.8 billion of contracts for local businesses, more than £200 million spending on roads and bridges, and support for the development of 500 new homes.

Image of the Banniskirk Hub; Source: SSEN Transmission

The Banniskirk Hub forms part of the TSO’s more than £22 billion investment in the period until March 2031, potentially rising to £31.7 billion, to transform the electricity network in the north of Scotland to enable the homegrown low-carbon electricity required to meet clean power and energy security targets. The need for the project has been independently assessed and approved by the National Energy System Operator (NESO) and energy regulator Ofgem.

Independent economic analysis, peer-reviewed by BiGGAR Economics, forecasts that if fully delivered, the £31.7 billion investment could support up to 17,500 jobs in Scotland, including 8,400 in the north of Scotland, and add up to £7 billion to the Scottish economy, with £3 billion in the north of Scotland alone.

Alison Hall, Director of Development for SSEN Transmission, emphasized: “Today’s decision marks an important milestone in delivering UK and Scottish Government clean energy and energy security targets – creating a hub for projects that will help build a cleaner, more secure, and affordable electricity system for generations to come.”