The UK’s energy regulator, Ofgem, has opened a tender process for the offshore transmission assets that will connect the 2.9GW Hornsea 3 wind farm to the UK power grid, inviting bids for their ownership and operation.
The regulator’s 14th Offshore Transmission Owner (OFTO) regime tender round has an estimated value of $4.6bn (£3.5bn).
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Hornsea 3, situated more than 100km off the Norfolk coast in the North Sea, is part of one of the world’s largest offshore wind power developments.
Once completed, which is anticipated by the end of 2027, Hornsea 3 is expected to generate sufficient electricity to supply 3.3 million homes across the UK.
The OFTO framework enables competing investors to bid for the rights to own, finance, operate and maintain prebuilt transmission infrastructure including cables and substations, both offshore and onshore.
Successful bidders secure a long-term, inflation-linked revenue stream for their role in providing these services.
According to Ofgem, the goal of its competitive process is to reduce costs for consumers while maintaining quality performance standards.
Ofgem major projects director Beatrice Filkin said: “Hornsea 3 is one of the world’s biggest wind farms. The offshore connection linking it to the onshore grid will help deliver homegrown energy to millions of British consumers as well as providing a great long-term opportunity for investors.
“By running a competitive process, Ofgem is helping attract the investment Britain needs for a cleaner, more secure energy system while making sure consumers get value for money.”
Since the OFTO regime began in 2009, more than £10bn has been invested in transmission links connecting 28 offshore wind farms, according to Ofgem.
The system forms part of ongoing efforts to modernise Great Britain’s energy infrastructure and respond to growing energy demands from industries including transport, heating and data centres.
The Hornsea 3 wind farm project itself is valued at £8.5bn and requires onshore infrastructure including 51km of underground cables to connect its electricity output to the National Grid substation near Norwich.
Earlier this month, Ørsted awarded OEG a contract to provide temporary power solutions for the Hornsea 3 wind farm, covering the commissioning of the converter station and the installation phase of the turbines.
