Cap and floor regime: Initial Project Assessment of the GridLink, NeuConnect and NorthConnect Interconnectors

Publication date
19th June 2017
Closing date
14th August 2017
Policy area
Status

Electricity interconnectors are the physical links, which allow the transfer of electricity across borders. They have potentially significant benefits for consumers: lowering electricity bills by allowing access to cheaper generation, providing more efficient ways to deliver security of supply and supporting the decarbonisation of energy supplies.

In May 2014, we consulted on our proposals to extend the cap and floor regulatory regime to near-term interconnector projects. Our August 2014 decision confirmed this approach and established our cap and floor assessment process. The cap and floor regime is the regulated route for interconnector investment in GB, which sits alongside the existing exemption route.

The second application window (Window 2) ran from 31 March to 31 October 2016, for interconnector projects seeking a cap and floor regime. Three projects applied for cap and floor regulation in this second window.

The three projects are GridLink (to France), NeuConnect (to Germany) and NorthConnect (to Norway).

This consultation provides our minded-to position on the Initial Project Assessment (IPA) of these three projects. In conducting our IPA, we have also taken into account potential interactions and impacts that Aquind, a proposed interconnector to France, which is being developed under the exempt route, may have on these three projects.

We seek views on our assessment of these three projects and aim to take a decision in September 2017.