Offshore transmission owner

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Offshore Transmission Owners (OFTOs) operate and maintain offshore electric power transmission infrastructure in Great Britain, delivering electrical power from offshore wind farms to the National Grid. OFTOs may design and build this transmission infrastructure, but in most cases wind farm developers construct the electrical transmission assets and then sell them to an OFTO once complete. [1] [2] [3] [4]

Contents

Operation

In the British electricity market, different functions of the electricity system are separated, with this practice beginning in the 1980s. The activities of generators, transmission operators, system operators, distribution operators and suppliers are separately licensed by Ofgem, with a single business unable to perform multiple functions due to UK Competition Law. [5]

The groundwork for the offshore transmission regime was laid by the Energy Act 2004, with the first offshore transmission license being awarded in 2011. As of 2021, all the offshore transmission infrastructure in Great Britain has been built by wind farm developers, who are then required to sell their transmission assets to a separately licensed Offshore Transmission Owner. The divestment must take place before the Generator Commissioning Clause date, on which the exemption from this requirement lapses. [5]

Divestment is managed via a regulated tender process administered by the energy regulator Ofgem. Qualifying bidders are required to conduct due diligence before submitting a bid to purchase the assets for transfer value determined by Ofgem and receive their bid Tender Revenue Stream (TRS) for a fixed license period. Ofgem then appoints a Preferred Bidder who negotiates the purchase terms with the Developer, after which Ofgem awards a transmission license and the transfer takes place.

Offshore transmission operators

WindfarmDeveloperCapacity (MW)Final Transfer Value (£m)OFTOLicense Award Date
Tender Round 1
Robin Rigg E.ON18065.5Transmission Capital Partners2 March 2011
Gunfleet Sands Ørsted17349.5Transmission Capital Partners19 July 2011
Barrow Ørsted and Centrica9033.6Transmission Capital Partners27 September 2011
Walney 1Ørsted, SSE and OPW184105.4Blue Transmission21 October 2011
Ormonde Vattenfall150103.9Transmission Capital Partners10 July 2012
Walney 2Ørsted, SSE and OPW184109.8Blue Transmission26 September 2012
Sheringham Shoal Scira315193.1Blue Transmission27 June 2013
Greater Gabbard SSE and RWE504317.1Equitix Group26 November 2013
Thanet Vattenfall300164.8Balfour Beatty17 December 2014
Tender Round 2
London Array Ørsted, E.on and Masdar630444Blue Transmission10 September 2013
Lincs Ørsted, Centrica, and Siemens270307.7Transmission Capital Partners4 November 2014  
Gwynt y Môr RWE, Stadewerke München and Siemens574351.9Balfour Beatty11 February 2015
West of Duddon Sands Ørsted and Scottish Power Renewables388268.9West of Duddon Sands Transmission Plc19 August 2015.
Tender Round 3
Westermost Rough Ørsted, Marubeni and GIB205172.3Transmission Capital Partners3 February 2016
Humber Gateway E.ON219173.3Balfour BeattySeptember 2016
Tender Round 4
Burbo Bank Ørsted258193.9Diamond Transmission Partners25 April 2018
Tender Round 5
Dudgeon Statoil402297.9Transmission Capital Partners5 November 2018  
Race Bank Ørsted573472.5Diamond Transmission Partners9 October 2019
Galloper RWE340281.8Diamond Transmission Partners24 February 2020
Walney ExtensionØrsted600446.6Diamond Transmission Partners1 June 2020
Rampion E.ON400279.5Transmission Capital Partners & International Public Partnerships Limited12 November 2021
Tender Round 6
Hornsea One Ørsted12181170Diamond Transmission Partners1 March 2021
Beatrice SSE, Red Rock Power Ltd, The Renewables Infrastructure Group and Equitix588437.9Transmission Capital Partners27 July 2021
East Anglia One ScottishPower Renewables and Vattenfall714692.6Transmission Capital Partners15 December 2022
Tender Round 7 (in progress)
Moray East Diamond Green Limited, Moray Offshore Renewable Power Limited, Delphis Holdings Limited, China Three Gorges Limited900666.1Transmission Capital Partners15th February 2024
Triton Knoll RWE Renewables, J-Power, Kansai857572.7ETEPCO
Tender Round 8 (in progress)
Hornsea Two Ørsted1,3681141.2Diamond Transmission Partners
Tender Round 9 (in progress)
Seagreen Phase 1 Seagreen Wind Energy Limited1,140ETEPCO (preferred bidder)
Tender Round 10 (in progress)
Moray WestMoray Offshore Windfarm (West) Limited882
Neart Na Gaoithe Neart na Gaoithe Offshore Wind Limited448
Dogger Bank A DBA Projco1,200ETEPCO (preferred bidder)
Tender Round 11 (in progress)
Dogger Bank B DBB Projco1,200

[6]

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References

  1. "Offshore transmission". ofgem.gov.uk .
  2. "Practical Law UK Signon". uk.practicallaw.thomsonreuters.com.
  3. Essential EU Climate Law, edited by Edwin Woerdman, Martha Roggenkamp, Marijn Holwerda, ISBN   1783470585
  4. Economics of Offshore Wind Power: Challenges and Policy Considerations By Rahmatallah Poudineh, Craig Brown, Benjamin Foley, ISBN   3319664204
  5. 1 2 "The OFTO Regime: A Retrospective". WFW. 2020-11-11. Retrieved 2021-07-30.
  6. "Offshore Electricity Transmission (OFTO) - Offshore transmission tenders and projects".