UK - Clarity on connecting offshore renewables welcomed by Industry

Today’s announcement by Energy Minister Malcolm Wicks on the regulation of connecting offshore renewables to the electricity network has been met with strong support by BWEA, the UK’s leading renewable energy body. The choice of a regulated price control approach for offshore transmission assets is an endorsement of the industry view that this approach best facilitates the development of offshore wind generation. It provides consistency with existing arrangements onshore, improves the economics of offshore renewable generation and provides a sound framework for the future development of offshore networks to connect future wind, wave and tidal generation.

The Government consultation examined the relative economics of offshore wind generation and concluded that there are sound reasons to expect offshore generation to face higher costs than onshore generation. Whilst this announcement does not, of itself, resolve the additional costs of offshore generation, it is a positive first step.
BWEA notes that the Government is minded to extend offshore National Grid’s role as system operator and the intent to initiate a formal consultation on this shortly. BWEA supports this proposal and will respond to the forthcoming consultation accordingly.

Richard Ford, Head of Grid and Technical Affairs at BWEA said “This is welcome news. The industry is delighted that the Government has finally settled the regulatory framework for offshore transmission. Now the hard work begins on the details of how this framework should be implemented. BWEA is looking forward to working with Government and Ofgem to deliver this".