UK energy regulator Ofgem expects offshore wind energy to make a significant contribution to UK renewable energy targets with 8 Gigawatts (GW) already planned and potential for up to a further 25 GW.
Plans to build these huge offshore wind energy projects moved forward a small step earlier this week when The Department of Energy and Climate Change (DECC) and Ofgem announced the final consultation stage for the new regulatory framework for the grid connection regime.
These changes are needed to allow the connection of offshore wind energy to the onshore grid network. The current Government proposals are expected to create new offshore transmission licenses which will be granted through a competitive tender process managed by Ofgem. Successful bidders for the licenses will become Offshore Transmission Owners (OFTOs). The cost of the new transmission infrastructure is expected to be several billion pounds.
Energy and Climate Change Minister, Mike O’Brien said “This is a key building block in delivering the offshore grid we will need by 2020. The UK already leads the world in offshore wind and with Government assessing the potential for much more, we need a grid which can be built and run in the most cost effective way.”
Alistair Buchanan, Ofgem Chief Executive said “The infrastructure needed to connect new offshore renewables has never before been constructed on this scale. Opening this up to competitive tender ensures it can be delivered more quickly and cost-effectively. This is a huge opportunity- for new entrants and companies already active in the GB market – to invest in these assets under a long-term and low- risk regulatory regime“.
The closing date for comments on the consultation document is the 16th April.

