Ofgem has chosen Diamond Transmission Partners as the preferred bidder to own and operate the high voltage (HV) transmission connection link serving the 1320MW Hornsea 2 offshore wind farm.
Diamond Transmission Partners, a consortium comprising Mitsubishi Corporation and HICL Infrastructure, was selected following a competitive Offshore Transmission Owners (OFTOs) bidding process.
Ørsted’s 165 turbine Hornsea 2 offshore wind farm is located 89 km from the Yorkshire coast and has a capacity of 1320MW.
Its associated transmission assets, which connect to National Grid’s electricity transmission network at Killingholme, are the most valuable yet brought to market through Ofgem’s OFTO regime at an estimated value of £1.189bn.
When the final value of the assets has been agreed by Ofgem, the preferred bidder will pay the final amount to Ørsted, when granted the assets OFTO licence by Ofgem.
Akshay Kaul, Ofgem Interim Director of Infrastructure and Security of Supply, said: “Connecting offshore wind farms such as Hornsea 2 to Great Britain’s electricity transmission network helps harness the power of North Sea wind to deliver renewable energy supplies to British consumers.
“The competitive OFTO regime helps ensure this is done at the least possible cost to consumers.”
Launched in 2009, the OFTO regime has so far secured more than £7bn of private investment in offshore transmission assets which have connected more than 10GW of offshore wind generation to Great Britain’s electricity transmission network.
Ofgem estimates that up to 13 OFTO assets, with a value of around £10bn will be tendered through the OFTO regime between 2023 and 2025.
The tenth OFTO Tender Round will begin early in 2023 and will comprise multiple OFTO assets.