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Four bidders have been shortlisted by Ofgem for the UK’s biggest ever offshore transmission tender round.
The four bidders have successfully passed a bidding qualifying round and will now be invited to submit tenders to become Offshore Transmission Owners (OFTOs).
All four bidders will be able to bid for the three offshore transmission assets of Dogger Bank A Offshore Wind Farm, Neart na Gaiothe Offshore Wind Farm and Moray Offshore Wind Farm (West), estimated to be worth a combined total of around £2 billion.
The teams comprise of a consortium led by Gravis Capital Partners, EKITD Consortium, Diamond Transmission Partners and Transmission Capital Partners.
Ofgem networks director Rebecca Barnett said: “As we bring greater numbers of larger OFTO assets to market we are seeing increasing interest from investors and new bidding consortia coming forward. This increasingly competitive field is great for consumers because the extra competitive pressure ultimately helps keep energy costs down.
“Many investors are looking for green, sustainable investments that offer a steady, index-linked income – this is exactly what OFTOs provide. With a stream of multibillion pound OFTO assets coming to market over the next few years there are many opportunities for more investors and consortia to come forward and get involved.”
Ofgem has previously said the next two years will see a “surge” in OFTO assets coming to market as part of the government’s efforts to deploy 50GW of offshore wind generation by 2030. Ten such connections are expected to go under the hammer in two bidding rounds in 2024 and 2025.
The OFTO regime has operated for 11 years, having so far brought in investment for 24 assets, with several more currently going through the process.
The next bidding round is due to begin in early 2024. Ofgem will assess the bids and grant licences to the winners in a process that usually takes around two years.
In April, Ofgem confirmed the delivery models for shared offshore transmission infrastructure needed to meet the government’s 2030 offshore wind target.
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