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Ofgem, the energy regulator for Great Britain, has opened the bidding process for the transmission assets of Dogger Bank B, which is a crucial part of what is set to become the world’s largest offshore wind farm. This significant move is aimed at finding a new owner for the assets ahead of the wind farm’s expected operational start next year. The assets, crucial for a 1.2 GW output, are valued at around £1 billion.
The process began on February 14, 2024, with an Enhanced Pre-Qualification (EPQ) phase, inviting interested parties to declare their interest and sign a confidentiality agreement. Upon fulfilling these requirements, candidates will receive detailed information about the assets and the terms of the transfer.
The EPQ phase is set to conclude on May 1, 2024, at noon BST, with Ofgem planning to narrow down the field to as many as eight qualified bidders by mid-July. The criteria for selection focus on economic and financial robustness, asset management experience, and a strategic approach to both takeover and ongoing operations, among other financial and risk management capabilities.
Ofgem’s tender aims to welcome new players into the transmission sector while ensuring candidates have the technical and financial competence to manage these critical assets throughout their lifecycle. The selection process involves a mix of pass/fail assessments and a points-based evaluation for those exceeding basic qualifications.
Following the initial selection, the Invitation to Tender stage will kick off, with completion targeted for early 2025. This may lead to a final Best and Final Offer stage if a preferred bidder does not emerge. The successful bidder is expected to be granted their license within six months following Ofgem’s final decision, marking a significant milestone in the development of renewable energy infrastructure in the UK.
