Ofgem’s competitive tendering regime is cutting the costs for connecting offshore wind farms to the UK grid by at least £700m, according to figures released today.
The figures, produced by independent consultants for the UK energy regulator, are based on the first three tender rounds.
The regime chooses the most competitive bids made by firms to own and run links to offshore wind farms over a 20-year period.
Fifteen tenders have now been completed, with the fourth tender round to be launched next month to compete for the right to own and run the link to the 258MW Burbo Bank Extension in the Bay of Liverpool.
Ofgem said it expects to launch a fifth tender round in the autumn.
Ofgem acting senior partner, networks Maxine Frerk said: “The figures published today show that competition is helping to deliver savings for consumers for connecting offshore wind.
“The regime attracts new companies into Britain’s energy market and it has brought in £2.7bn investment so far.
“We expect a further £2bn of investment in the projects for tender rounds four and five.
“We want to continue to get the best deal for consumers from network regulation. So from next year we plan to open up high value upgrades to the onshore high voltage grid to competition.”
Image: the next OFTO tender will be for the link to the Burbo Bank Extension (Dong Energy)
