On Wednesday, February 26, Ofgem launched the third Offshore Transmission Owner (OFTO) tender round, for the high voltage transmission links of two offshore wind farms, Westermost Rough and Humber Gateway. They are situated in the North Sea off the coast of Yorkshire.
Worth almost £400m, Tender Round 3 (TR3) is the first new tender round to be run under the enduring regulatory regime, which includes new features designed to yield further savings for consumers. The competitive tender process will result in an OFTO being appointed for each project, with a licence granted to own and operate the transmission assets. In return both OFTOs will receive a guaranteed revenue stream for 20 years.