Hornsea Project One's transmission assets worth over £1 billion
Office of Gas and Electricity Markets (Ofgem) has published the Final Transfer
Value of the Hornsea
wind farm's offshore transmission assets. The Authority has assessed the
economic and efficient costs which ought to have been incurred in connection
with developing and constructing the Transmission Assets, and values the
assets at £1,174,931,778.
Ofgem does not expect any further changes to the Assessed Costs. However,
it will not finalise the Final Transfer Value until the Authority has determined
to grant an offshore transmission licence to the successful bidder.
Last year, Ofgem named Diamond Transmission Partners as the preferred bidder
for the offshore transmission system at the Hornsea
offshore wind farm. Diamond Transmission Partners is a consortium of Mitsubishi
Corporation and Chubu Electric Power. Diamond Transmission Partners will
be responsible for transmission of electricity from this wind farm to the
UK's onshore National Electricity Transmission System.
Developed by Danish energy giant Ørsted, Hornsea
is the world’s largest offshore wind farm to date. It is located in the
North Sea off the east coast of England. The site consists of 174 Siemens
Gamesa Renewable Energy. SWT-7.0-154
turbines, spanning across an area of 407km2, all of which have
been installed. The site was fully commissioned at the end of 2019 and
is anticipated to power over one million homes in the UK.
The transmission assets for Hornsea
have been tendered under the sixth tender round of Ofgem's OFTO regime
which saw around £2 billion of transmission assets being tendered.
Ofgem also announced today that it has opened
regarding amendments to Hornsea
offshore transmission licence. Proposed modifications includes adding a
contingent event revenue adjustment mechanism (the CEA mechanism). In summary,
the CEA mechanism is a bespoke pass-through item for this Licence. It allows
the Authority to adjust the Potential Licensee’s revenue entitlement should
costs and/or expenses arise in the event that the Potential Licensee has
been required by the Secretary of State to increase the size of its security
in respect of its decommissioning programme to account for the payment
Any representations or objections to the proposed modifications must be
made via email only due to the ongoing COVID-19 restrictions on or before
midnight at the end of 4 February 2021.
For more information on offshore wind
farms worldwide, click
for our interactive map of offshore wind farms, infrastructure and ports.