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The Renewable Energy Strategy Consultation published in June 2008 set out the Government’s proposals for a ten-fold increase in our use of renewable energy. The UK has access to substantial onshore and offshore wind resources and, as relatively mature technologies, we expect them to play a large part in delivering the planned expansion.
At present there is very little electricity network infrastructure installed offshore. DECC and Ofgem are working jointly to develop a new regulatory regime for offshore electricity transmission to connect significant amounts of renewable offshore generation to the GB onshore grid. The aim is for the new regime to ‘Go Active’ in June 2009 and ‘Go Live’ a year later (currently planned for June 2010).
The Energy Act 2004 provides the powers for the Secretary of State to put in place the new regulatory arrangements for offshore electricity transmission. Once the new arrangements for regulation of the offshore network are in place it will be for the Office of the Gas and Electricity Markets (Ofgem) to administer and if necessary, modify or approve modifications, to these arrangements so that they remain fit for purpose. These offshore generation projects are important to the Government's renewable energy targets and will be supported by the Renewables Obligation (RO).
As part of the offshore transmission project, DECC and Ofgem have undertaken a series of consultations to develop the high-level principles and proposals for implementation of the regulatory regime and the appropriate model for licensing offshore transmission connections.
In January 2008 the Government published a response to the consultation: offshore Transmission - A Joint Ofgem/BERR Policy Statement July 2007 which was held in summer 2007 on the initial proposals for the licensing and regulatory framework that will apply to offshore electricity transmission networks. This set out decisions in a number of key areas concerning the competitive tender process and transitional arrangements and addressed the key concerns raised in the consultation responses.
Ofgem also published a further consultation document: Offshore Electricity Transmission - Regulatory Policy Update which set out further thoughts and clarifications on the design of the offshore transmission regime.
In February 2008 BERR and Ofgem published 'Modification of electricity transmission standard licence conditions - way forward document'. As part of the consultation process this document set out a way forward for modifying electricity transmission licence conditions. It provided an overview of the proposed structure of the standard conditions in electricity transmission licences in order to accommodate new offshore electricity transmission licensees and set out proposed modifications to standard conditions for offshore transmission licensees and the Great Britain System Operator.
On 18 February 2008, BERR held an Offshore Wind and Transmission Investor Conference to highlight and explain in detail the proposals and significant investment opportunities relating to further competitive rounds for offshore windfarm sites (‘Round 3’) and the regulatory regime for offshore transmission. The conference was aimed at existing and potential investors in both offshore wind generation and related grid infrastructure.
On 6 June 2008 BERR and Ofgem released draft Code and GBSQSS (Great Britain Security and Quality of Supply Standard) change proposals in advance of the next joint consultation on the offshore transmission regime. The documents are available on Ofgem’s website.
On 13 June 2008 BERR and Ofgem published the full consultation document. This document sets out further proposals for the design of the competitive offshore transmission regime and consults on the licence and industry code changes that will be required to implement the new regime. It follows on from previous consultations and policy statements.
On 7 July 2008, BERR and Ofgem held a stakeholder communication event to explain our proposals for a competitive offshore transmission regime and the licence and industry code changes associated with the new regime. The slides from the presentation and notes from the question and answer sessions are below.
On 6 October 2008, Ofgem published a consultation document on the competitive tender process for the new offshore electricity transmission regulatory regime. The document seeks comments on proposals for running tenders in the transitional regime as well as further thoughts on how tenders in the enduring regime might differ. It contains further detail on the stages in the tender process, Ofgem's proposed selection and evaluation strategy as well as key activities which will be required ahead of a tender round commencing. The consultation also includes draft Pre-Qualification and Invitation to Tender documents for comment. The documents are available on Ofgem's website.
On 20 November 2008 Ofgem and DECC published a consultation document: Offshore Electricity Transmission - A Further Joint Ofgem/DECC Regulatory Policy Update. This document gives a refinement to our policy positions on the detailed design of the regulatory regime as well as the revised drafts of the codes and licences developed following responses to the June 2008 policy update and other stakeholder engagement. We believe that the design of the offshore transmission regime will benefit from this additional consultation by giving stakeholders a further opportunity to submit views on these updated proposals.
The consultation, annexes and impact assessment are available from the link below:
On 8 December 2008, DECC and Ofgem held a stakeholder communication event to enable discussion on the design of the proposed regulatory regime and to provide further clarity on the Offshore Transmission project status, EU Third package, design of the regime (as set out in the November 2008 joint DECC/Ofgem consultation document) and the key stages, next steps and dates for the implementation process. The slides from the presentation, attendee list and notes from the Q and A session are available from the link below.
On 9 December 2008, DECC held an investor seminar to explain in detail the investment opportunities for Offshore Transmission. The seminar was aimed at potential investors in offshore transmission generation. The slides from the presentation and attendee list are available from the link below.
This briefing note by the Centre for Sustainable Energy and Distributed Generation shows the results of a sensitivity analysis carried out on the appropriate threshold for a transformer capability redundancy requirement to apply in respect of an offshore transmission system and the robustness of the minimum-security criteria for the offshore cable circuit.
On 5 March 2009, Ofgem published the final consultation on the competitive tender process for the offshore electricity transmission regulatory regime. The document outlines Ofgem's proposed approach to managing the tender process for identifying offshore transmission owners (OFTOs), and the regulations that would support the process. The consultation also includes draft Pre-Qualification, Qualification, Tender Regulations and Invitation to Tender documents for comment. The documents are available on Ofgem's website. The deadline for responses is 16 April 2009.
On 23 March 2009, Government published a response to the consultation: 'Offshore Electricity Transmission - A further joint Ofgem/DECC Regulatory Policy Update' (Final Consultation Document). This document sets out our joint policy proposals and timetable for implementation of the new offshore transmission regime. This consultation also sets out the final proposed changes to the various codes and licence conditions to implement the proposals. These have been developed in the light of the views expressed by respondents to the November 2008 Regulatory Policy Update and other engagement with stakeholders. We believe these proposals will create the right framework for efficient investment in offshore transmission networks, allow scope for technical and operational innovation, and are sufficiently flexible to meet the needs of the future offshore generators.
On 7 April 2009, DECC and Ofgem held a communication session to update stakeholders on the latest issues for consultation and the steps to implementing the offshore transmission regulatory regime. The slides from the presentation and attendee list are available from the links below.
The consultation, annexes and impact assessment are available from the Offshore Transmission: Consultation webpage
On 17 June 2009, DECC and Ofgem published a joint final statement on the new regulatory regime for offshore transmission before implementation at 'Go-Active' expected to be on 24 June 2009. This document sets out at a high level the features of the new regime and competitive tender process. The document also summarises the responses and highlights changes that have been made to the policy framework following the March 2009 " Government response to 'Offshore Electricity Transmission - A further joint Ofgem/DECC Regulatory Policy Update'.
In addition, we are publishing letters sent by Lord Hunt to code and licence owners informing them of the modifications he is making. The final statement and ministerial letters to code and licence owners (with accompanying annexes) are available from the links below:
Letters and modifications were sent by Lord Hunt to Code and Licence Owners on 16 June 2009.
Notice confirming the "Offshore Transmission Go Active" Date.
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