Changes to the Initial Project Assessment of the Nautilus Offshore Hybrid Asset
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
Publication date
Closing date
Industry sector
- Offshore Transmission Network
- Transmission Network
Related links
- Multi-purpose Interconnectors Pilot Regulatory Framework
- Initial Project Assessment of the third cap and floor window for electricity interconnectors
- Initial Project Assessment of the Offshore Hybrid Asset pilot projects
- Decision on the Regulatory Framework for the Non-Standard Interconnectors of the Offshore Hybrid Asset pilot scheme
- Decision on Multi-Purpose Interconnector pilot project Selection
Nautilus is an Offshore Hybrid Asset (OHA) project being assessed for our OHA Pilot Scheme. The OHA Pilot Scheme is in its Initial Project Assessment (IPA) stage, considering which projects should be granted a regulatory regime in principle. Since the assessment described in the minded-to consultation of 1 March 2024, which included a proposal to reject the Nautilus project, due to its high constraint cost impact, and the uncertainty in the project’s configuration meaning its GB welfare impact is uncertain, two key characteristics of the project have changed - GB location and the modelled capacity of cables linking the Belgian offshore island to the Belgian shore.
This proposed change is being made, as we understand from National Grid Ventures (NGV), to reduce the projected constraint costs for this project and therefore mitigate concerns that we raised as part of our minded-to reject position on Nautilus in the OHA IPA.
Additionally, authorities in Belgium have resolved the uncertainty on the project’s configuration, by confirming that the capacity connecting the offshore island to the Belgian shore will be 1.4GW, rather than 3.5GW as we had previously assessed. We are also able to update the analysis using updated cost and revenue sharing arrangements for the project, enabling a full assessment of the project’s likely impacts.
These changes to the key characteristics of the Nautilus project merit a re-consultation on the assessment of its benefit to GB consumers. The change in connection location, being undertaken to improve Nautilus’ prospects of receiving a regulatory regime, reduces constraint costs on Nautilus considerably but also impacts constraint costs to varying degrees on other Window 3 and OHA applicant projects. Clarification over the Belgian Energy Island configuration improves our assessment of the project’s maturity, and the impact on the Social Economic Welfare of the project.
We welcome views from all interested stakeholders and aim to take a final decision on the IPA in autumn 2024.
Respond name
Nick Pittarello