Offshore transmission

The government set an ambitious target for the deployment of renewable energy over this decade.

By 2020, the government expects 15 per cent of the UK’s total energy needs to be met from renewable sources. This means that around 30 per cent of our electricity may come from renewables.

To achieve this substantial deployment of green energy, the government has established a policy framework to support investment in renewable generation. Within this framework, offshore wind is recognised as being an important source of renewable energy.

Government support schemes will encourage further investment in renewable electricity generation. For this power to reach homes and businesses in Britain, fit for purpose electricity networks must be developed, particularly offshore.

It is estimated that billions of pounds of investment will be needed to connect these projects.

Offshore Transmission Regime

A step change in network investment of this kind calls for a more dynamic approach to the development of transmission networks: an open, competitive approach that is built on encouraging innovation and new sources of technical expertise and finance.

To this end, along with the government, we have established the competitive offshore transmission regulatory regime. It underpins the government’s renewable energy targets by placing the requirements of renewable generators and Britain’s electricity consumers at the forefront.

Our role in Offshore Transmission

Competitive Tender Process

We are responsible for managing the competitive tender process through which offshore transmission licences are granted.

Granting licences to operate new offshore transmission assets via a competitive tender process mean that generators are partnered with the most efficient and competitive players in the market. This should result in lower costs and higher standards of service for generators and, ultimately, consumers.

Offshore Transmission Tenders

Offshore Transmission electronic tendering portal

Please visit the Offshore Transmission Electronic Tendering Portal where you can register to participate in the tender process. If you have any issues registering on the Portal, please contact Daniel Baker (tendercoordinator@ofgem.gov.uk).

Past key dates in appointment of Offshore Transmission Owners (OFTOs)

On 22 July 2009 we began the first set of transitional tenders to appoint new offshore grid companies (OFTOs).

Transitional tenders are for projects where the transmission assets have been, or will be constructed by the offshore developer, then transferred to the OFTO.

The second transitional tender round was started on 17 November 2010. Tender Round 3 (TR3), the first tender round to be run under the enduring regime, was launched in February 2014.

Publications and updates

  • Published: 26th Sep 2018
  • Decisions
  • 1 Associated documents
The Authority’s determination to grant a licence to TC Dudgeon OFTO plc in respect of the Dudgeon project.

  • Published: 21st Sep 2018
  • Decisions
  • 1 Associated documents
Authority's final decision in relation to the application for certification under the ownership unbundling requirements of the Third Package by TC Dudgeon OFTO

  • Published: 21st Sep 2018
  • Decisions
  • 1 Associated documents
Publication of our decision in relation to Tender Entry Conditions for Tender Round Six

  • Published: 19th Sep 2018
  • News and blogs, Press releases
  • 1 Associated documents
Ofgem is holding an information event in advance of commencing OFTO Tender Round 6 (TR6).

  • Published: 29th Aug 2018
  • Decisions
  • 1 Associated documents
Decision in relation to an exceptional event claim from TC Ormonde OFTO Limited.

  • Published: 24th Aug 2018
  • Closed: 21st Sep 2018
  • Consultations and responses
  • 3 Associated documents
Ofgem proposes to modify certain standard conditions of the transmission licence for TC Dudgeon OFTO plc using our powers under Section 8A of the EA 1989

  • Published: 30th Jul 2018
  • Decisions
  • 2 Associated documents
Decision on the methodology for the calculation of Interest During Construction (IDC) and the IDC rate to apply during 2018/19

  • Published: 15th May 2018
  • Decisions
  • 1 Associated documents
Thanet OFTO Limited – Decision on exceptional event claim submitted under Amended Standard Condition E12-J4.

  • Published: 3rd May 2018
  • Decisions
  • 1 Associated documents
Notification of designation of Diamond Transmission Partners BBE Limited to the Applicant, the European Commission and the Secretary of State.

  • Published: 25th Apr 2018
  • Decisions
  • 2 Associated documents
The Authority's final decision in relation to the application for certification under the ownership unbundling requirements of the Third Package by DTP BBE Ltd.

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