Investment in Transmission Infrastructure for Future Offshore Wind Developments

Given the ambitious targets for offshore wind in support of the UK’s net zero ambitions, it is recognised that the existing grid connection infrastructure may be inadequate and that it is likely that provision needs to be made for more co-ordinated grid connections that incorporate the additional capability required to connect future offshore generation projects.

The costs and investment required to support the later connection of future offshore development(s) is referred to as “Anticipatory Investment”. The UK’s Office of Gas and Electricity Markets (Ofgem) has recognised that careful consideration needs to be given to the management and allocation of risk in the context of Anticipatory Investment to ensure appropriate investment is forthcoming and to facilitate increased co-ordination of projects. In light of this, Ofgem is reviewing aspects of its Anticipatory Investment policy and has undertaken a consultation with respect to its approach to Early Stage Assessment.