GREEN energy could be exported from Scotland to Norway and Ireland in an ambitious revenue-raising scheme.

The executive has funded a feasibility study examining the possibility of linking Shetland, Orkney and the Western Isles to a subsea power network.

The project could see power generated from the islands through wind and wave power being transported through underwater cables.

It is hoped that the scheme, which could be up and running within five years, will transform the Northern and Western Isles into Europe’s green energy powerhouse and bring huge economic benefits.

The £45,000 study, being carried out by Highlands and Islands Enterprise (HIE), will explore the viability of harnessing renewable energy on the islands and transferring it to Scandinavia, Northern Ireland, the Irish republic or the UK mainland.

A briefing paper for the project states: “HIE has an aspiration to establish the area as a leading centre of excellence. The existing electricity grid network is running at full capacity and it is impossible to connect substantial levels of new generation without significant investment in the infrastructure.

“The opportunity for island-based renewable generation to support the achievement of the government’s renewable energy targets may be the key argument in support of enhanced grid connectivity.”

It states that the creation of a subsea cable between Shetland and the west coast of Norway should be considered.

For the past quarter of a century, the oil and gas produced around the UK’s most northern outpost has been a highly lucrative lifeline for the islands’ 22,000 inhabitants. Shrewd deals by local officials have seen Shetland pocket a significant share of the spoils of keeping the mainland supplied with fossil fuels.

Now the island authority is keen to take advantage of the renewables revolution. Viking Energy, which is controlled by the council, and Scottish and Southern Energy are developing plans to erect 200 wind turbines, with a total output of 600 megawatts, on Shetland’s Lang Kames.

“Norway has got big sources of hydroelectric power but it is quite possible that could be complimented by wind energy from Shetland,” said Aaron Priest, principal development officer for Shetland council.

“If everything fell into place there is a possibility we could export directly into Norway rather than the UK. The announcement of this cable study by the executive recognises the fact that the renewable resources we have in Shetland are among the best in the world. An electricity grid connection to Shetland is being taken very seriously at the highest level.”

Shetland council believes the link is not dependent on the executive meeting its renewable energy targets and would be an important revenue generator for the authority.

Tavish Scott, the Shetlands MSP and transport minister, added: “The enterprise minister Nicol Stephen has made it clear that the cable study will be given a high priority and will be properly funded.

“A subsea link would benefit both ends of the cable. While wind power will lead the way in Shetland I am confident it will be followed by marine developments tapping Shetland’s wave and tidal current resources.”

Officials in the Western Isles are also keen to exploit the potential green power bonanza overseas. “I don’t see any problems in exporting energy to the Irish Republic, Northern Ireland or Norway,” said Derek McKim, the islands’ head of external strategy.

“We are not just interested in meeting the energy needs of the islands and the UK. It doesn’t matter to us where the power goes. It’s a free market and the energy that we generate will go to the highest bidder, although our closest overseas buyer would be Northern Ireland. Europe is increasingly linked in terms of transport and it is entirely logical that we become linked in terms of energy, too.”

Orkney is equally keen to become involved although its renewable energy industry is focused on tidal rather than wind power. “Once Orkney has its supplies, the surplus energy will be made available to all buyers,” said Shona Croy, the council’s head of economic development.

“We are considering all the options, including exporting to Norway or Ireland, but it will be up to the private sector to supply the infrastructure.”

The cost of linking the Northern and Western Isles to Norway and Ireland is estimated at between £500m and £1 billion.

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