Update to the provisional cap and floor level for the NeuConnect Interconnector

Reports, plans and updates

Publication date

Industry sector

Transmission Network

In May 2020, we published a decision to enable project finance solutions for two cap and floor projects, Greenlink and NeuConnect. The project developers requested changes to our cap and floor regime to broaden the sources of financing available for them to progress their projects through construction. NeuConnect completed their Final Project Assessment in July 2022 and achieved financial close on 27 July 2022, securing debt finance. As part of our Final Project Assessment, we committed to publish NeuConnect’s provisional cap and floor levels following financial close.

The financial parameters for the NeuConnect project have been confirmed following the conclusion of the debt raise process. This letter sets out our oversight of the debt raise process; the provisional notional cap and floor levels; and the provisional actual floor level. We will then confirm the final cap and floor levels for the project prior to operation at our Post Construction Review stage.

We have also published the updated NeuConnect cap and floor financial model 1 (NCCFFM1) and the model handbook (NCCFFMH1).