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: 23rd Jun 2016
  • Decisions
  • 1 Associated documents
Gwynt y Môr OFTO plc – Direction under paragraph 10 of Amended Standard Condition E12-J4.

  • Published: 31st May 2016
  • Closed: 30th Jun 2016
  • Consultations & responses
  • 2 Associated documents
Consultation on proposed modifications to the electricity transmission licence.

  • Published: 31st Mar 2016
  • Decisions
  • 1 Associated documents
Ofgem has decided to retain RPI as the inflation index for the upcoming Offshore Tender Round 4 and as the default for the cap and floor interconnector regime. This has no implications for our indexation approach for RIIO.

  • Published: 29th Mar 2016
  • Guidance
  • 4 Associated documents
An update of the RIGs Excel templates and accompanying guidance document for Licensees who have had their Licence granted under Transitional Tender Round 2.

  • Published: 29th Mar 2016
  • Guidance
  • 4 Associated documents
Publication of the RIGs Excel templates and accompanying guidance document for Licensees who have had their Licence granted under Transitional Tender Round 3.

  • Published: 29th Mar 2016
  • Guidance
  • 6 Associated documents
An update of the RIGs Excel templates and accompanying guidance document for Licensees who have had their Licence granted under Transitional Tender Round 1.

  • Published: 18th Mar 2016
  • Reports & plans
  • 1 Associated documents
Ofgem has now completed three rounds of offshore transmission tender competitions, Tender Round 1 (TR1), Tender Round 2 (TR2) and Tender Round 3 (TR3). Following on from a previous evaluation of the benefits achieved by the Offshore Transmission Owner (...

  • Published: 4th Mar 2016
  • Decisions
  • 1 Associated documents
Ofgem has decided upon the capped rate for IDC as applied to offshore transmission for the 2016/17 financial year, which would be applied to all offshore transmission assets that reach final investment decision (FID) during that period.

  • Published: 9th Dec 2015
  • Closed: 29th Jan 2016
  • Consultations & responses, Open letters & correspondence
  • 2 Associated documents
This letter presents the capped rate for IDC Ofgem is minded-to apply to offshore transmission for 2016-17 financial year, which would be applied to all assets that reach final investment decision (FID) during that period.

  • Published: 26th Nov 2015
  • Reports & plans
  • 1 Associated documents
This report provides an overview of the revenue earned by each Offshore Transmission Owner (OFTO) in the regulatory year to 31 March 2015.

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