Decision on the Final Project Assessment of the Greenlink interconnector to Ireland
Decision
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Transmission Network
The cap and floor regime is the regulated route for interconnector development in GB. There are three main stages to our cap and floor regime – the Initial Project Assessment (IPA), the Final Project Assessment (FPA) and the Post Construction Review (PCR). Following our IPA of the Greenlink interconnector we decided to grant the project a cap and floor regime in principle in September 2015.
The Greenlink project is being developed by Greenlink Interconnector Limited. It will be a 500MW interconnector between Pembrokeshire in Wales, Great Britain and Great Island in County Wexford, Republic of Ireland. Our cap and floor regulatory regime applies to the GB portion of the cost and revenues of the project (50% share).
As part of the FPA process, we conducted a cost assessment of the Greenlink project and set out our view on efficient expenditure which informs the project’s provisional cap and floor levels. We also provided confirmation of the cap and floor regime design that apply to the Greenlink project.
This paper is a decision on the costs and technical aspects of the FPA for the Greenlink interconnector. Following financial close, we will update the cap and floor financial model and publish the preliminary cap and floor levels based on the costs that we have assessed in this document. We will then confirm the final cap and floor levels for the project prior to operation at our PCR stage.