Ofgem opens $4.6B tender for Hornsea 3 transmission assets

· Energy · United Kingdom

UK energy regulator Ofgem has opened a tender process for the offshore transmission assets that will connect the 2.9 GW Hornsea 3 wind farm to the UK power grid, in a process valued at $4.6 billion. Hornsea 3, developed by Orsted off England's east coast, is one of the largest offshore wind projects in the world, and its export cables and onshore connections fall under the UK's offshore transmission owner regime, in which the link is auctioned to a separate investor rather than owned by the wind farm developer. The tender is a significant opportunity for transmission investors and contractors, and its timing matters as the UK seeks to expand offshore wind capacity while containing the grid costs passed to consumers.

Why it matters：Auctioning multi-billion-dollar grid links separately from wind farms is a model other markets are watching as offshore wind scales up and transmission investment needs grow.

Key points

  • The tender covers transmission assets for the 2.9 GW Hornsea 3 wind farm.
  • The process is valued at $4.6 billion.
  • The link is auctioned separately from the wind farm under the UK's offshore transmission regime.

Sources (original reporting)

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