11 July 2023
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Joining the Dots: what offshore wind farms need to know about multi-purpose interconnectors

To The Point
(6 min read)

The UK needs a coordinated approach to offshore wind farm development to meet its targets, including the use of multi-purpose interconnectors (MPIs) that connect wind farms to the shore or other countries' grids. Ofgem is consulting on the regulatory framework and market arrangements for these offshore hybrid assets, considering licensing, cost sharing, ownership, and support schemes. One key question is whether wind farms should sell electricity in the home market or the offshore bidding zone. Depending what Ofgem and DESNZ decide, offshore wind farms could be worse off.

There needs to be a more coordinated approach to offshore wind farm development in the UK, if it is to meet its ambitious targets to have 50GW of offshore wind and double the current interconnector capacity by 2030. This means a new asset class, the multi-purpose interconnector or MPI. MPIs can connect a wind farm to the shore, and/or to another wind farm, and/or to another country's grid. So, to use industry terms, they can either be an OFTO or an interconnector, or probably both.

Ofgem consultations on the regulatory framework, including market arrangements, for offshore hybrid assets
Regulatory framework consultation
Consultation on market arrangements for multi-purpose interconnectors

What should you do?

The consultations close on 14 July 2023. If you are planning an interconnector or an offshore wind project then consider responding to the questions so you can help shape how your project will be regulated and supported in future. Do contact one of us, or your usual Addleshaw Goddard contact, for help.

To the Point 

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