National Grid Electricity System Operator (ESO) has invited interested parties to give their thoughts on its proposals for a new competitive tendering regime for the ownership of large onshore transmission assets.
The ESO is developing the Competitive Appointed Transmission Owner (CATO) regime at the behest of Ofgem. The regulator is hoping to lower costs and spur innovation by extending the Offshore Transmission Owners (OFTO) model to onshore assets.
Participants will bid to build, own and operate the assets. To ensure the arrangements meet the needs of all parties, the ESO is seeking input from companies that might take part such as design, construction or financing firms.
Fintan Slye, director of UK System Operator at National Grid, said: “We’re excited about what this could mean for both the industry and consumers.
“We believe that early competition has the potential to unlock significant consumer value and drive innovation in network development.”
The ESO is holding a series of workshops in September to gather views on the proposals.
In November, Ofgem began the sixth OFTO tender round. Shortly afterwards, the regulator selected Diamond Transmission Partners as the preferred bidder to own and operate the transmission connection for the Galloper offshore windfarm as part of the fifth tender round.