With up to 15GW of additional offshore wind anticipated, the regulator said it was looking to reduce the cost of offshore transmission asset development by better coordination of offshore assets through wider network benefit investment (WNBI). An example of WNBI might be linking existing infrastructure to connect new wind farms to the grid. According to Ofgem there is “no clear route” for investment in coordinating links by non-developers – entities outside the existing offshore players.
Ofgem is consulting on three options: Split offshore transmission operator (Ofto) where separate tenders are issued for preliminary works and build and operation; early Ofto build whereby the full development is tendered at the outset; and Transmission Operator-initiated late Ofto build in which one of the grid operators undertake preliminary work before a full Ofto tender is offered.