Colin Hood, Chief Operating Officer at Scottish and Southern Energy (right) says: "This deployment provides a blueprint for how Smart Grids can be used to connect high penetrations of renewable generation in a cost effective way and resolve grid congestion as a result.

"The connection of similar levels of renewable generation on Orkney by the conventional means of network reinforcement would have cost around £30m. The total cost of developing and delivering this innovative solution has been substantially less than this and has taken far less time."

A TNEI Grid study June 2007 on Orkney Isles connections shows the Thurso/ Dounreay capital cost of connection at £47m, with 2 180MW cables and the Shetland to Orkney then Keith at £205m with 2 at 500MW units one via Orkney.

It was based on then current estimates (March 2007) for wind generation of 1,000MW on the Western Isles, 600MW on Shetland, 200MW on Orkney and the 1,000MW Beatrice offshore windfarm in the Moray Firth.

Timescale for these connection options for Orkney shows earliest predicted completion of the 126MW generation would be by 2010, possible delays to 2012. Onshore network capacity reinforcement is available by 2011, possible delays to 2014.

The Orkney Smart Grid technology is based on use of software and the principle that capacity exists in real-time on a power distribution grid due to variation in demand for electricity and diversity in the output of grid connected generators. This allows for greater numbers of renewable generators to be connected to existing electricity network, in a cheaper and faster way than traditionally,  allowing generators to access power network capacity not normally available under conventional network planning requirements.

The realisation of the Orkney Smart Grid is the culmination of over five years of work, beginning with the R&D of the technology at the University's Institute for Energy and Environment in collaboration with Scottish and Southern Energy. SGS was spun out from the University in 2008.

Orkney is one of the first examples of a commercially deployed Smart Grid technology in the UK and represents a significant milestone in the transition to a low carbon economy.

Alan Gooding, (left) MD of SGS, said: "SGS's technology is an ideal means of connecting more renewable generators quickly and cheaply, reducing the queue for generator connections and helping the UK to meet its 2020 renewable energy targets.

 "We have ambitious plans for growth building on our unique experience of having commercially deployed a key component the Smart Grid. We are delighted to be at the forefront of this new and rapidly growing market."

Professor Jim McDonald, Principal of the University said: "Innovative research has a critical role to play in securing the UK's energy future and helping to drive down CO2 emissions. Enhancing Strathclyde's successful links with industry is a key part of our strategic mission for knowledge exchange and SGS' success to date underlines the positive impact these partnerships can have on society and the wider economy."

The UK Government published 'Smarter Grids: The Opportunity,' which makes the case for developing Smart Grids in the UK, though this is often simply seen simply as a 'smart metering' system allowing users to monitor power usage. 

Energy and Climate Change Minister, Lord Hunt, said: "Smart grids will help manage the massive shift to low carbon electricity such as wind, nuclear, and fossil fuels. Globally business of developing smart grids has been estimated at £27bn over the next 5 years and UK has the know-how to be part of that."

SGS are building upon the success of the Orkney deployment and currently working with several network operators in the UK, exploring opportunities for connecting increased levels of renewable generation to the existing grid. The technology is needed to remove near-term barriers to the connection of renewable generators and avoid or defer requirements for building new network infrastructure.

The project's lead academic researcher at the University, Dr Graham Ault,  (right) Department of Electronic and Electrical Engineering, said: "This application of Strathclyde research is the result of close collaborative research between Scottish and Southern Energy and the University. The research and innovation relationship continues to grow, with several other technologies being researched at present."