Clean energy

Renewable and clean energy generation could offer the most significant step change in Shetland’s economy since the discovery of North Sea Oil and Gas in the 1970s. Indeed, Shetland is already home to some of the UK's most significant clean energy projects, with others in the pipeline.

We are extremely fortunate in Shetland to have a substantial quantity of renewable energy resources in and around Shetland. It's estimated these resources could generate around 2,200 gigawatt-hours per annum.

We are currently only harnessing energy from a tiny fraction of this. But that is changing.

By investing in renewable energy solutions, Shetland can continue to export energy to the wider world, diversify the economy and create opportunities for future generations.

High output windfarms already exist in Shetland, including community-owned assets, and several major onshore developments are either under construction or have been consented.

The largest of them, Viking Energy Wind Farm, started generating huge amounts of renewable energy in 2024 when its 103 turbines were activated. Although not the largest onshore project in terms of the number of turbines, the excellent wind conditions mean Viking is one of the most productive.

With 443MW installed capacity, Viking is estimated to generate enough wind energy to power over 450,000 homes.

Work is underway on more onshore wind energy projects, including the Mossy Hill wind farm north of Lerwick.

Shetland is also home to the world's first array of tidal turbines in the Bluemull Sound between Yell and Unst. The island of Unst is also home to the Pure Energy Centre.

Read more about how Shetland's energy industry is changing in our blog post.

Plans to develop offshore windfarms in the NE1 site to the east of Bressay continue to progress. Floating turbines could generate around 3GW of energy, potentially ushering in a new era of energy-related work in the islands.

Key projects were awarded seabed development rights in the 2022 ScotWind leasing round, offering huge potential for clean energy generation and associated investment and employment opportunities.

Energy company ESB’s Stoura Offshore Wind Farm is in early-stage development. Its site lies about 40km east of Shetland and it is estimated the installed capacity will be around 500MW.

Meanwhile, Arven Offshore Wind Farm is targeting the early-2030s to start production on its own site east of Shetland. The partnership between Ocean Winds and Mainstream Renewable Power anticipates installed capacity of approaching 2.3GW, with the promise of over 1,000 jobs during construction and long-term positions once operational.

Ambitious plans to breathe new life into established infrastructure are also being pursued, which should help Shetland retain its position as a leading UK energy hub.

Since the 1970s, Shetland has been home to the Sullom Voe Terminal which played a key role in the development of offshore oil and gas industries. Terminal owners EnQuest are now planning a transformation of the site into a centre for global-scale decarbonisation and new energy projects.

Veri Energy, a wholly owned subsidiary, is leading the way with plans to use existing infrastructure for carbon storage, green hydrogen generation and the electrification of offshore oil and gas assets.

Elsewhere, the Shetland Islands Council is working in partnership with other authorities as one of the driving forces behind the Islands Centre for Net Zero, supporting the energy transition. Just as Shetland played a pivotal part in the North Sea oil industry, the islands are preparing to fulfil an equally crucial role in the global transition to clean energy.

Opportunities exist for developers working in the wind (both offshore and onshore), wave and tidal power sectors. For more information contact Katrina Wiseman, Head of Business Growth at Highland and Islands Enterprise to find out more. Email katrina.wiseman@hient.co.uk or call +44 (0)1595 744 909.