THOUSANDS of jobs could be created in the north-east with plans to build a subsea energy link between Peterhead and England.
The project is expected to transform the Buchan corner into a centre for renewable energy business, leading to years of investment in the area.
The proposals, led by Scottish Hydro Electric Transmission Ltd (Shetl), will involve a major expansion of the town’s power station.
If approved, a 400kV sub-station and other facilities will be built on land near the plant. They are expected to form part of the highly-anticipated Energetica corridor of new businesses, stretching from Peterhead to the Bridge of Don.
Scottish Hydro-Electric has now tabled details of its £700million scheme with Aberdeenshire Council.
The company plans to hold a public consultation next month before lodging a formal application for planning consent before the end of the year.
The aim of the scheme is to increase the amount of electricity that can be transferred across the UK. It will be a significant upgrade of the current transmission system which carries electricity between Scotland and England.
The existing set-up is at full capacity, but the new subsea link would allow more electricity to flow between the two countries and more renewable energy to feed into the grid.
Inefficiencies in the current system were highlighted in May last year when six Scottish windfarms were paid hundreds of thousands of pounds in compensation after being forced to shut down when it was too windy and the National Grid was overloaded.
Shetl has teamed up with the National Grid to advance the plans, which would involve a two-gigawatt cable being run under the seabed from Boddam to Teesside.
The scheme, known as the Eastern Link, could be ready by 2018, although the 400kV sub-station would need to be in operation by 2016.
A spokesman for Shetl said last night that the project would attract new development into the area.
“What this will do is put Peterhead on the map as a hub for energy businesses, particularly from the renewables sector,” he said.
“We would expect to see a significant amount of development and investment in and around the town once this is up and running.”
He said that the subsea cable would require a specialist workforce. “There will be employment opportunities for the local community through associated infrastructure work,” he said. “There will also be indirect benefits, such as contractors staying in the area, using local hotels, shops and restaurants.”
Banff and Buchan MP Eilidh Whiteford said last night: “This has the potential to be a major local development which can help secure Peterhead’s position as the location of choice for the energy sector, building on the Energetica corridor.”