Ofgem has rejected applications by two projects, both proposed links between the UK and Norway, to participate in its multi-purpose interconnector pilot scheme.
The regulator had previously postponed its decision on the projects while it awaited clarity from Norwegian authorities on their position with regards to the development of multi-purpose interconnectors.
As well as linking together separate power grids, multi-purpose interconnectors will also be connected to offshore wind farms along the route, reducing expenditure on offshore transmission infrastructure and enabling the generators to export electricity to both networks.
Ofgem invited projects to take part its multi-purpose interconnector (MPI) pilot scheme last year and received four applications by the deadline for submissions at the end of October.
In December, the regulator decided to proceed with two projects – the Nautilus interconnector with Belgium and the Eurolink interconnector with the Netherlands, both being developed by National Grid Ventures.
Although all four projects met its initial eligibility criteria, Ofgem decided in December to pause its decision on the other two connections to Norway, one being developed by National Grid Ventures and the other by NorthConnect Consortium.
Ofgem has now said following discussions with Norwegian authorities, “the current indications are that the MPI pilot scheme’s development timeline is unlikely to align with Norway’s timelines for MPI development. Consequently, we are unable to consider the two projects to Norway as having met the eligibility criteria of our MPI pilot scheme.”
“While the timelines on near-term MPI development appear incompatible, the relevant UK authorities are engaging with relevant Norwegian authorities on a regular basis to understand the future landscape for MPIs in Norway,” the regulator added.
Ofgem said the Nautilus and Eurolink projects will undergo a needs case assessment in the “coming months” to determine whether they should be awarded financial support under the cap and floor regime for interconnectors.