Posted on July 19, 2023
Ofgem has narrowed down the contenders for ownership and operation of up to three offshore wind farm transmission assets in its “most valuable” Offshore Transmission Owner (OFTO) bidding round to date.
Joining the race is Gravis Capital Partners, leading a consortium of newcomers, alongside previous bidders EKITD Consortium, Diamond Transmission Partners, and Transmission Capital Partners.
All four potential offshore transmission owners have successfully passed the initial ‘Enhanced Pre-Qualification’ stage, demonstrating their capabilities to fund and manage the OFTO assets involved in the tenth tender round, Ofgem has said.
These four bidders will now vie for ownership of the transmission assets for Dogger Bank A Offshore Wind Farm, Neart na Gaiothe Offshore Wind Farm and Moray Offshore Wind Farm (West).
These assets are collectively valued at approximately £2 billion.
Ofgem Director of Networks Rebecca Barnett said: “As we bring greater numbers of larger OFTO assets to market we are seeing increasing interest from investors and new bidding consortia coming forward.
“This increasingly competitive field is great for consumers because the extra competitive pressure ultimately helps keep energy costs down.
“Many investors are looking for green, sustainable investments that offer a steady, index-linked income – this is exactly what OFTOs provide. With a stream of multibillion-pound OFTO assets coming to market over the next few years there are many opportunities for more investors and consortia to come forward and get involved.”
