Thursday 1 June 2023

Ofgem opens bidding for £7bn offshore wind connections

Ofgem opens bidding for £7bn offshore wind connections

Britain's energy regulator, Ofgem, has announced the launch of two bidding rounds in 2024 and 2025 for £7 billion worth of offshore transmission assets, aimed at attracting investors.

The auction will include approximately ten Offshore Transmission Owner (OFTO) assets, which provide prebuilt transmission connections for offshore wind farms and offer guaranteed returns for 25 years.

The move aligns with the government's ambitious plan to increase offshore wind generation capacity to 50GW by 2030.

Over the past 11 years, the OFTO regime has achieved success by attracting investment for 24 assets.

Akshay Kaul, Ofgem Interim Director, Infrastructure and Security of Supply Group, said: "Britain already has the highest offshore wind deployment in Europe and the second highest in the world.

"With the government’s target of 50GW of offshore wind generation by 2030 there is still huge potential for investors to get in early and be part of an industry that’s set for huge worldwide growth."

Written by

Bruna Pinhoni

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