This would, in effect, make them extensions of the onshore national grid network.
Two more will be decided at a later stage with a second transitional tender process covering a further six wind farms commencing later this year.
These new Offshore Transmission Owners (OFTOs) will own and operate the links and have been selected following a competitive tendering process for ‘transitional’ projects that meet a set of requirements based on the various stages of the windfarms development.
Consultations are still underway concerning final details of ‘enduring’ projects that will also include the OFTOs designing, financing and buildings the links from the outset. OFGEM will determine a provisional transfer value of the assets that bidders will pay to the developer to acquire already installed links. The OFTOs will receive a steady income stream for 20 years, collected by the Offshore System Operator and importantly, based on asset availability irrespective of the quantity of energy produced
The move by the UK Government and OFGEM to a licensed regulatory regime similar to that of the onshore grid is aimed at controlling costs through competition while also recognising the importance of this component in delivering energy to the consumer. National Grid Electricity Transmission plc is excluded from owning these assets but their role will be extended to include that of Offshore System Operator to administer developments and the collection of payments for the OFTO.
Three preferred bidders have now been selected covering seven windfarms as follows: Transmission Capital Partners for the Barrow, Gunfleet Sands 1 & 2 and Robin Rigg wind farms; Macquarie Capital Group Ltd for Sherringham Shoal and Walney 1 & Walney 2 wind farms; and Balfour Beatty Capital Ltd for Thanet wind farm. A Best & Final Offer process is to be run with all three of the above covering the Ormonde wind farm while for the Greater Gabbard wind farm the Invitation To Tender stage is to be rerun with Green Energy Transmission, Macquarie Capital Group, National Grid Offshore Ltd and Transmission Capital Partners.
By Peter Barker
