Ofgem chooses preferred bidder for link to Race Bank Wind Farm
Press release
- Publication date
- Industry sector
- Offshore Transmission Network
- Transmission Network
Today Ofgem has selected Diamond Transmission Partners as the preferred bidder to own and operate the high voltage transmission link to the Race Bank offshore wind farm for the next 20 years.
Diamond Transmission Partners, a consortium comprising Mitsubishi Corporation and HICL Infrastructure Company Limited, was selected by Ofgem through a tender process in which bidders compete to become Offshore Transmission Owners (OFTOs).
The Race Bank wind farm, located 27km off the coast of Norfolk, consists of 91 six megawatt (MW) turbines and has a capacity of 573MW. It is now operational and can produce enough power for over 500,000 UK homes.
The developer of the windfarm and the link is a consortium comprising Ørsted, Macquarie European Infrastructure Fund 5, Macquarie Capital, and Sumitomo Corporation. The consortium’s initial estimated value of the transmission assets is £530.4 million.* Once the final value of the assets has been agreed by Ofgem, the preferred bidder would pay this amount to the developer once the bidder’s OFTO licence has been granted.
Since Ofgem and Government launched the OFTO regime in 2009 winning bidders have so far invested £3 billion in links and generation assets which have connected 4.6GW of offshore wind farms. Tendering ownership of these links through the regime continues to reduce the cost of connecting offshore wind. At least £700m in savings have been achieved for consumers so far across the first three tender rounds.
Notes to editors
* This figure is subject to Ofgem’s ongoing cost assessment process, with a final transfer value of the transmission assets being published as part of the licence grant process.
- The reserve bidder for the project is Equitix.
- The offshore regulatory regime was developed by the Department for Business, Energy and Industrial Strategy (formerly the Department of Energy and Climate Change) and Ofgem, and was launched in 2009. The regime is for licensing offshore electricity transmission and uses competitive tendering to ensure lower costs and higher standards of transmission services for generators and ultimately, consumers.
- The Race Bank wind farm link is part of tender round 5 which started in 2016. The other links are to the Dudgeon, Galloper, Walney Extension and Rampion wind farms. The invitation to tender stages for Galloper and Walney Extension are currently running and will be followed by Rampion.
- See the Official Public Notice for the appointment of Diamond Transmission Partners as the preferred bidder to own and operate the link to the Race Bank wind farm.
- For further information on the OFTO regime, see Offshore transmission tenders.
Further information
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Chris Lock: 0207 901 7225
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