Ofgem has officially launched the process to identify a suitable bidder for the offshore transmission licence for the Seagreen Phase 1 offshore wind project off Scotland.
The regulator has made available various documents relating to the TR9 tender.
These include the Enhanced Pre-Qualification document, which sets out the requirements bidders need to demonstrate in order to be invited to participate in the Invitation to Tender (ITT) stage for TR9.
Bidders should demonstrate that they satisfy the requirements set out in this document and demonstrate how they would approach financing, operating and managing offshore transmission assets.
Ofgem will evaluate bidders’ submissions against the criteria published in this document and select a shortlist of qualifying bidders who will be invited to participate in the ITT stage.
Once a preferred bidder is selected there will be an optional Best and Final Offer (BAFO) stage and a preferred bidder stage where the relevant entity is required to demonstrate that it can become the successful bidder.
The BAFO stage may be conducted if two or more qualifying bidders tie with the lowest TRS or two or more qualifying bidders have the lowest TRS and those TRS are within a small percentage of each other, where in such circumstances all qualifying bidders will be invited to submit a BAFO, or Ofgem considers further value can be obtained from the tender exercise and in such circumstances all qualifying bidders will be invited to submit a BAFO.
The selected bidder for the qualifying project will be granted an OFTO Licence, which is expected to include an entitlement to an associated 24-year revenue stream in return for purchasing the transmission assets from the developer of the Seagreen Phase 1 qualifying project and owning, operating and managing them in accordance with the obligations of the OFTO Licence.
The transmission assets for the 1075MW Seagreen Phase 1 to be tendered include offshore and onshore substations and cables connecting the wind farm to the mainland near Carnoustie in Angus.