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25/09/2009

Bids Target Offshore Electricity Links

A key milestone in the drive to expand Britain’s offshore wind industry was announced by energy regulator Ofgem.

Thirteen firms have been selected to tender for the ownership and operation of nine high-voltage transmission links worth £1.15 billion.

The tender will grant licences for the nine projects, which have the potential to connect up to 2,000 megawatts of renewable electricity.

The tender round will run until March/April 2010 when the successful firms will be announced.

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Ofgem's Chief Executive Alistair Buchanan, said: "Offshore generation has a crucial role to play if Britain is to meet its climate change targets. That is why selecting the first thirteen firms to bid for the ownership and operation of £1.15 billion of high-voltage transmission links is so important.

"The quality of the firms selected for the tender round shows how strong the competition is to operate these offshore transmission links."

A second round for assets that are built, under construction, or at an advanced preconstruction stage, will be held in summer 2010. Companies which are successful in both of these tender rounds will take ownership of the transmission link once it is constructed. They will then run it and in return will receive a stable, regulated income for 20 years.

(CD/GK)

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