Portfolio

Overview

Our current portfolio of project includes a portfolio of ten Offshore Transmission Owner (OFTO) projects under management or at preferred bidder stage and three interconnector projects in development

Offshore Transmission Owner (OFTO) Projects

Since 2009, Ofgem has run competitive tenders through which successful bidders can own and operate offshore transmission networks which connect offshore wind generation to the onshore power system.

The offshore transmission networks have to date been constructed by the offshore wind farm generators, and then transferred to the successful bidders shortly after commissioning.The offshore transmission networks usually comprise an onshore substation, one or more onshore and offshore high voltage export cables, and one or more offshore substations.

There have been more than 20 offshore transmission networks tendered to date.

Interconnector Projects

In 2014 we successfully submitted an application for our FAB Link interconnector project to Ofgem’s ‘Cap and Floor’ regulatory framework. This framework was developed by Ofgem to support interconnector developers and investors by providing a guaranteed minimum level of return. So far nine projects have been successful in their application for the framework with two projects now in operation under the regime. We expect a further application window to open in 2022 in support of bringing forward further interconnector projects to help meet the UK Government’s Net Zero climate change targets.

Due to the distances involved in connecting between countries, electricity interconnectors predominantly utilise HVDC technology. This reduces the cost of operating the link and provides increased flexibility to support System Operators in ensuring supply and demand can always be balanced.  HVDC interconnector assets usually comprise of two onshore converter stations connected by two sub-sea HVDC cables.