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Hornsea Two transmission assets up for tender

By: Bridget Randall-Smith 02/08/2021 4COffshore

Cables General Grid Windfarms

The Office of Gas and Electricity Markets (Ofgem) has commenced the process of selecting an offshore transmission owner (OFTO) for Ørsted’s 1,368 MW Hornsea Two offshore wind farm. The transmission assets are expected to be worth more than £1.2 billion.

Since 2009, the UK has run competitive tenders to select and licence OFTOs to own and operate the assets that connect offshore wind farms to the onshore network. To date 21 OFTO tenders have been completed representing an investment of approximately £5.74bn in offshore transmission networks.

On the 22^nd July Ofgem commenced the Enhanced Pre-Qualification (EPQ) Stage for Tender Round 8 (TR8). Hornsea Two is the only qualifying project and interested participants have until 7^th October 2021 to apply.

Up to a maximum of 8 bidders will be pre-qualified and invited to participate in the Invitation to Tender (ITT) Stage. The ITT will result in the selection of a preferred bidder based evaluation of financial and non-financial deliverability of each qualifying bidder’s submission. The preferred bidder will work with the developer to finalise arrangements.

Full tender schedule:
· Release of EPQ documents: 22nd July 2021
· EPQ bid submission deadline: 7th October 2021
· Bidder shortlist published for those to be invited to the ITT stage: 6th December 2021
· Release of ITT documents: 13th December 2021
· ITT bid submission deadline: 14th March 2022
· Outcome of bid evaluation published (announcement of Preferred Bidder): Late-May/early-June 2022

The successful bidder will be awarded an offshore transmission licence and a 25-year revenue stream in return for purchasing the transmission assets from the offshore wind generator. The OFTO will own and manage the transmission assets (including offshore platforms and export cables) up to the point of connection with the onshore network. The OFTO will also be subject to a capacity-weighted availability incentive which will allow it to gain bonuses or incur penalties based on asset availability.

After 25 years Ofgem will discuss options for a/ decommissioning, b/ extending the contract or c/ tendering for a new OFTO.

Hornsea Two Offshore Wind Farm is located approximately 89 km (55.3 miles) off the Yorkshire coast in the North Sea and adjacent to Hornsea One. It will feature 165 Siemens Gamesa 8MW SG 8.0-167 DD turbines; 422 km of array cabling; an offshore substation; an offshore Reactive Compensation Station; three export cables; and connect to the grid at Killingholme, North Lincolnshire. Turbine installation is underway and the project is due to be fully operational in 2022.

This story was first reported exclusively for 4C Offshore subscribers. For more information, click here
For more information on offshore wind farms worldwide, click here.

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Hornsea Two transmission assets up for tender

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