The UK launched its biggest offshore transmission tender to date , with assets valued at around £3.5 billion linked to connecting Hornsea 3 to the electricity system.
The round corresponds to process number 14 of Ofgem's Offshore Transmission Owner (OFTO) scheme and will allow investors to compete for ownership and operation of the park's transmission infrastructure.
Hornsea 3 is located more than 100 kilometers off the coast in the North Sea and is scheduled to be completed by the end of 2027.
According to Ofgem, the project will have the capacity to supply electricity equivalent to the consumption of 3.3 million UK households .
The tender does not include the wind farm itself, but rather the evacuation assets that will connect it to the land grid.
The package includes cables, marine and onshore substations and other transmission components already built , which will be financed, operated and maintained by the successful bidder under the OFTO regime.
Selected investors will receive a long-term income stream, linked to inflation and conditional on the availability and performance of the assets.
The scheme contemplates revenues over a period of up to 25 years , which seeks to offer financial predictability while Ofgem maintains competitiveness on infrastructure costs.
Hornsea 3 takes the OFTO scheme to a new level
The magnitude of this round marks a leap forward compared to previous processes.
Since the OFTO scheme began operating in 2009, successful bidders have invested over £10 billion in transmission links corresponding to 28 offshore wind farms .
Now, a single round associated with Hornsea 3 concentrates assets estimated at £3.5 billion.
Ofgem's director of major projects, Beatrice Filkin, highlighted that the connection will allow one of the largest offshore wind farms currently under construction to be integrated into the grid.
“ The offshore connection linking it to the onshore grid will help supply domestically produced energy to millions of British consumers, as well as offering a great long-term opportunity for investors ,” he noted.
The regulator believes that the competitive model allows attracting private capital for new infrastructure while keeping pressure on costs that ultimately end up being passed on to the consumer.
The bidding schedule has been set. Interested parties may submit questions for clarification until December 16, 2026 , while the deadline for submitting bids is January 14, 2027 at 12:00 PM .
Ofgem then plans to evaluate the prequalification proposals and make any necessary clarifications with the bidders between January and April 2027 .
The notification of results and publication of the list of shortlisted bidders is scheduled for April 2027 .
The round is also part of a much larger expansion of the British offshore network.
Ofgem expects more North Sea transmission assets to enter the OFTO scheme in the coming years, accompanying the growth of offshore wind and the increase in electricity demand associated with transport, heating, industry and data centers.
With Hornsea 3, the UK is now taking that model to its biggest operation yet: £3.5 billion of competitive critical transmission infrastructure to connect new offshore wind capacity to the national grid .