Electricity distribution and related services | Tenderlake

Electricity distribution and related services

Contract Value:
-
Notice Type:
Contract Notice
Published Date:
04 April 2014
Closing Date:
01 May 2014
Location(s):
UKE12 East Riding of Yorkshire (UK UNITED KINGDOM)
Description:

The subject matter of this OJEU Notice is the proposed grant of offshore transmission licences to successful bidders for the purpose of connecting two wind farms to the GB onshore grid. Britain already has more offshore wind power than any country in the world – and the UK government plans to increase this significantly by 2020. Fit for purpose offshore electricity transmission infrastructure is required to transfer the electricity generated offshore to the onshore network and ultimately to consumers. It is important that this infrastructure is developed in a timely, secure and cost-effective manner. It should also provide best value to present and future electricity consumers, while reflecting the requirements of generators and ensuring that, as far as possible, offshore infrastructure develops in a coordinated manner. To support these plans, the UK's Department of Energy and Climate Change and the Office of Gas and Electricity Markets have developed a regulatory regime for offshore electricity transmission. A key part of this regime is that offshore transmission licences can be granted following a competitive tender exercise run by Ofgem, with a successful bidder being appointed as an Offshore Transmission Owner (‘OFTO'). Building on an already established regime for the awarding of offshore transmission licences in which approximately £2.5 billion of assets have been tendered for, Ofgem is now running a further tender competition. TR3 is the first competitive Tender Round for Generator Build projects under the enduring regime. The two projects identified in this notice as ‘Qualifying Projects' are in accordance with the Tender Regulations. A transmission licence is expected to be granted for each project. High level details about these projects is set out as follows:

Project: Westermost Rough;

Developer: WMR Limited (DONG Energy);

Capacity (MW): 205.

Project: Humber Gateway;

Developer: E.On Climate / Renewables UK;

Capacity (MW): 220.

Successful bidders in this tender will enter into a transfer agreement for the purchase of offshore transmission assets constructed by the developer in each case and then maintain and operate the assets in accordance with the offshore transmission licence and relevant industry codes, standards and agreements. In addition to being granted the offshore transmission licence, successful bidders will be required to enter into a range of agreements including with the relevant generator, any relevant distribution network owner and the National Electricity Transmission System Operator. Even though the tender process in relation to both projects listed above will commence at the same time, each project will be the subject of separate agreements and documentation and the successful bidder for each project will be granted a separate offshore transmission licence.

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The Buyer:
Office of Gas and Electricity Markets
CPV Code(s):
65300000 - Electricity distribution and related services
65320000 - Operation of electrical installations