The UK Government expects the development of offshore renewable generation to make a major contribution to the achievement of its emission targets. Up to 33 GW of offshore renewable generation may be developed.
The majority of this generation will be connected to the GB electricity grid through offshore transmission cables. Offshore transmission is defined as being any offshore transmission network that operates at 132kV or above. Offshore transmission will be a licensed activity, regulated by Ofgem. It is anticipated that several billion pounds of new transmission investment will be required.
A new regulatory regime for offshore transmission networks is being developed by Ofgem in partnership with the Department of Energy and Climate Change (DECC), and previously the Department for Business Enterprise and Regulatory Reform (BERR).
A key feature of this regime is that each new tranche of transmission assets required by offshore generators will be awarded through a competitive tender process. This process will be run by Ofgem, using competition to secure the most efficient and economic outcome for GB consumers.
Introducing competition will:
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encourage new entrants to enter the industry,
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provide more scope for innovation, and
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allow a longer term and lighter touch regulatory regime.
For further information on the development of the industry codes, technical standards and the transmission licence, please visit the "Policy framework development" page.
For further information on the development of the tender process, please visit the "Offshore transmission tenders" page.
Ofgem has established the Regulatory Services Directorate to complete the regime design and to manage Offshore Transmission tenders.