Subscriber Login

Europe News

British regulator shortlists bidders for 2.5 GW offshore links [free access]

April 15, 2019

The British energy regulator Office of Gas and Electricity Markets (Ofgem) has shortlisted five bidders for operating three offshore transmission lines worth GBP2.7 billion under tender round 6 (TR6) of its Offshore Transmission Owner (OTFO) regime.

 

The three transmission links are currently under construction and will connect the 1.2 GW Hornsea Project One off the coast of Lincolnshire and Yorkshire; 588 MW Beatrice wind farm project off the coast of Scotland; and 714 MW East Anglia ONE wind farm project off the coast of East Anglia to UK’s onshore national grid.

 

The Hornsea Project One is a joint venture (JV) between Ørsted and Global Infrastructure Partners, and consists of 174 turbines rated 7 MW each. The offshore project will be fully commissioned in 2020, and will be linked with the UK mainland grid through a 120-km-long cable.

 

The 588 MW Beatrice offshore wind project located in Outer Moray Firth is been developed by the Beatrice Offshore Windfarm Limited (BOWL), a joint venture of British energy group Scottish and Southern Energy (SSE) (40 per cent), Copenhagen Infrastructure Partners (CIP) (35 per cent) and Red Rock Power Limited (25 per cent). The GBP2.6 billion wind project is expected to become fully operational in 2019.

 

The 714 MW East Anglia ONE project is being developed by Scottish Power Renewables (Iberdrola). The GBP2.5 billion project will be commissioned in 2020.

 

The shortlisted bidders are Aegir Energy Transmission (a consortium of Macquarie Corporate Holdings Pty Limited and Frontier Power Limited); Core Transmission Partners [a consortium of formerly known as  Bilfinger Berger Global Infrastructure SICAV SA (BBGI SICAV) S.A and Semco Maritime A/S]; Diamond Transmission Partners (a consortium of Mitsubishi Corporation and Chubu Electric Power Company); Equitix TEPCO Consortium (a consortium of Equitix Limited and TEPCO Power Grid Incorporated); and Transmission Capital Partners (a consortium of International Public Partnerships Limited and Transmission Capital Partners Limited Partnership).

 

These five companies will take part in the final invitation to tender (ITT) stage, staggered for each project. Following this, Ofgem will appoint an OTFO for each link, which will receive a guaranteed revenue stream for 25 years under their licence terms, subject to the availability of their assets.

 

The ITT stage for the Beatrice project will commence shortly. Whereas, for the Hornsea Project One it is anticipated to commence in July 2019, and for East Anglia ONE, it is likely to take place in February 2020.

 

Ofgem will notify about the details of the preferred bidder for each project at the completion of each ITT evaluation stage.

 

(GBP1=USD 1.304)