Offshore Transmission Community Review_ abstract of outputs

Transferring to supply: foreword by Minister of State for Nuclear and Networks, Andrew Bowie I’m extremely happy to see the conclusion of the Offshore Transmission Community Assessment ( OTNR ), marking our transfer from assessment to supply. The OTNR is a implausible instance of the federal government working collaboratively with regulators, transmission operators, the Electrical energy System Operator ( ESO ), builders and commerce our bodies corresponding to Renewables UK to ship for shoppers, trade, the surroundings, and communities. Our thanks go to all our companions for enabling this work and interesting so positively. By the Offshore Transmission Community Assessment, now we have made vital progress in altering the way in which we ship the transmission infrastructure wanted to satisfy our formidable 2030 and internet zero targets. This ranges from the publication of the Holistic Community Design ( HND ) in July 2022, launching a fund of as much as £100 million to help the event of coordinated choices for well-developed tasks, transferring ahead on multi-purpose interconnectors, and now the publication of suggestions and actions to ship for a Future Framework for offshore wind and transmission deployment. Delivering the OTNR has solely been attainable by means of good relationships between the federal government, regulators, TOs , ESO , builders and commerce our bodies corresponding to Renewables UK. Our due to them for supporting this work. We proceed to work in partnership to decarbonise the ability sector by 2035. As Minister of State for Nuclear and Networks, I’m proud to supervise the supply of those outputs which converse to the breadth and depth of labor undertaken by this assessment. This work and its ongoing implementation, delivering a coordinated and strategic method to offshore wind connection is of significant significance, delivering on our guarantees of power safety, affordability, and sustainability for the entire of Nice Britain. Andrew Bowie MP

Minister of State for Nuclear and Networks

1. The Offshore Transmission Community Assessment: conception, goal and method

The federal government expects annual electrical energy demand to extend from present ranges by over 35% in 2035 and by over 70% in 2050. Offshore wind will play a key half in delivering this and would require vital extra transmission infrastructure each onshore and offshore to move this power to areas of demand.

The Offshore Transmission Community Assessment ( OTNR ) was launched in 2020, in response to rising concern that the developer led method, the place offshore wind tasks linked individually to the grid on a radial (point-to-point) foundation, would current a significant barrier to realising our elevated ambition of constructing 50GW in offshore wind capability by 2030.

The OTNR has reworked the method taken throughout the UK electrical energy sector to delivering connections for offshore wind tasks and as we speak has set out a daring new set of suggestions for a future framework to ship the subsequent technology of the UK’s world main offshore wind energy.

Among the OTNR ’s outputs embody:

the Holistic Community Design – delivered by the Vitality Programs Operator in July 2022

suggestions for a future framework to help our supply of internet zero by means of offshore wind technology, summer season 2023

ground-breaking work on new applied sciences corresponding to multi-purpose interconnection

vital modifications to present codes, requirements and processes to place transmission supply on the entrance foot whereas additionally defending communities, surroundings and shopper prices

Accelerated Strategic Transmission Funding ( ASTI ) selections by means of Ofgem

) selections by means of delivering retrospective coordination amongst properly superior tasks

enabling regulatory change to standardise coordination for transmission infrastructure

launching a session on group advantages for community infrastructure

See the complete checklist of outputs throughout the OTNR ’s timeframe.

The assessment was led by the Division for Vitality Safety and Internet Zero ( DESNZ ), previously the Division for Enterprise, Vitality and Industrial Technique ( BEIS ), with particular outputs and help from a variety of presidency and trade our bodies and an trade skilled group.

2. Core outputs of the Offshore transmission community assessment

Delivering a holistic method to community planning

The Holistic Community Design ( HND ) was printed by the Electrical energy System Operator ( ESO ) in July 2022, with give attention to transferring offshore wind connections from a radial (point-to-point) method for particular person tasks, to a extra coordinated one which considers future tasks and the sharing of infrastructure. The primary iteration of the HND provided a really helpful onshore and offshore design for a community to allow the connection of 18 new offshore wind farms with a mixed capability of 23GW .

The advantages of the HND embody:

enabling the supply of 50GW of offshore wind capability by 2030, the HND offers the transmission wants case to attach 23GW of offshore wind tasks in whole. Contemplating environmentaland group impacts up entrance, in a strategic method, will assist these tasks to achieve consent

of offshore wind capability by 2030, the offers the transmission wants case to attach of offshore wind tasks in whole. Contemplating environmental and group impacts up entrance, in a strategic method, will assist these tasks to achieve consent avoiding and minimising group and environmental impacts in contrast with the earlier radial method. The strategic community design method of the HND reduces the variety of onshore connections and, the place onshore connections are crucial, evaluation of connection factors has been made with consideration to group impacts up entrance

reduces the variety of onshore connections and, the place onshore connections are crucial, evaluation of connection factors has been made with consideration to group impacts up entrance vital price financial savings (at present estimated by ESO to be round £4.3 billion) by means of planning a coordinated community that optimises community infrastructure

to be round £4.3 billion) by means of planning a coordinated community that optimises community infrastructure balancing the wants of builders, shoppers and communities by contemplating the OTNR ’s Community Design Aims of price, deliverability and operability, environmental impacts, and group impacts on an equal footing

The HND observe up train is at present being ready by the ESO and can present really helpful connections for a further 24GW of offshore wind. This train shall be finalised in 2023.

In time, the ESO will construct on the method delivered by means of the OTNR to ship Centralised Strategic Community Planning ( CSNP ), which is able to take an entire system method to designing the transmission community. As soon as established, we anticipate that the Future System Operator will tackle duty for the CSNP .

Setting the path by means of coverage change and motion

Interconnection and Multi-Function Interconnectors

The OTNR thought-about how you can take a extra strategic method to windfarm improvement, together with how greatest to facilitate Multi-Function Interconnectors ( MPIs ); property that mix interconnection with direct connections to, and transmission of electrical energy generated by, offshore wind farms. MPIs assist us obtain our internet zero and power safety goals by extra effectively integrating renewable power onto the grid and offering entry to a various pool of technology.

We’ve got launched an MPI Discussion board Dialogue Group to have interaction with trade and regulatory stakeholders throughout 4 workstreams overlaying:

(1) the Contracts for Distinction scheme

(2) licence situations for MPIs

(3) the regulatory regime, charging and market preparations for MPIs (4) operability of MPI property

In June 2023 the joint DESNZ / Ofgem session on Market Preparations for MPIs , and the Ofgem session on the Regulatory Framework for Offshore Hybrid Property have been launched to additional progress this workstream.

Growing suggestions for a Future Framework

In 2021, we consulted on proposals for a brand new, extra strategic end-to-end method to how offshore wind and related transmission infrastructure is developed and delivered. The Division has thought-about responses to the session and collaborated with OTNR supply companions to develop 3 key suggestions for a Future Framework. The important thing suggestions are:

the division ought to work with mission companions to develop a extra strategic method for the deployment of offshore wind and Multi-Function Interconnectors

undertake supply fashions to maximise effectivity when it comes to price and danger

think about the timing of transmission design and supply

Grant funding to help voluntary coordination

The Offshore Coordination Assist Scheme ( OCSS ) was launched on 12 December 2022. This £100 million grant fund will allow profitable tasks at a late stage of improvement to voluntarily develop another coordinated design to their radial proposal that could possibly be put ahead for planning utility. Purposes closed on 28 February 2023.

Accelerated Strategic Transmission Funding

In August 2022 Ofgem consulted on how they might help the accelerated supply of the strategic electrical energy transmission community upgrades wanted to satisfy the federal government’s 2030 renewable electrical energy technology ambitions. This doc accommodates our resolution to introduce a brand new Accelerated Strategic Transmission Funding ( ASTI ) framework. Ofgem printed their resolution on the Accelerated Strategic Transmission Funding ( ASTI ) framework in December 2022.

On this Ofgem set out the preliminary checklist of ASTI tasks, their resolution on exempting strategic tasks from competitors, the brand new course of for assessing and funding ASTI tasks and the vary of measures Ofgem are introducing to guard shoppers in opposition to extra dangers that altering the method brings.

Delivering retrospective coordination amongst properly superior tasks

Our work to ship retrospective coordination will proceed aswe work to allow coordination by means of voluntary developer participation, facilitated by authorities, the Electrical energy System Operator ( ESO ) and Renewables UK. The OCSS Grant funding scheme will conclude with funding allotted by summer season 2023. Following this, the ESO will undertake an unbiased research into transmission routes in East Anglia in mild of the outcomes of the OCSS . After the research concludes and concerned events think about its outcomes and make any required modifications, builders will observe the standard and required unbiased planning processes, with statutory obligations to seek the advice of communities.

Working with communities internet hosting infrastructure

Understanding and listening to the affect of transmission infrastructure on communities is important; one of many 4 design rules of the HND revolves across the affect on native communities. We are going to work to develop steering on group engagement expectations to make sure that infrastructure builders think about on the outset of their programmes how their tasks can deal with the respectable issues of affected communities, often partaking with them all through the pre-application part and past.

As well as, the federal government needs to make sure that communities are recognised for his or her very important function in internet hosting onshore transmission community infrastructure which helps the supply of cheaper, safer and low carbon power technology in Nice Britain. The federal government launched a session on group advantages for community infrastructure, which proposes to introduce voluntary steering on the suitable ranges and types of advantages to offer communities the information, energy and adaptability to resolve what advantages they need in session with the mission developer.

Regulatory change to allow coordination

Anticipatory funding ( AI )

Anticipatory funding is funding that goes past the rapid wants of the community, growing infrastructure that may help later connections of different offshore developments. In October 2022, Ofgem printed their Resolution on Anticipatory Funding and Implementation of Coverage Adjustments. The important thing outcomes from this resolution included:

Ofgem upholding their minded-to place on the allocation of AI danger between the patron and later consumer(s) of shared transmission infrastructure

upholding their minded-to place on the allocation of danger between the patron and later consumer(s) of shared transmission infrastructure the introduction of an early-stage evaluation course of for properly superior tasks pursuing coordination

and lastly, the extension of consumer dedication preparations to the potential later consumer of AI funded offshore transmission infrastructure

Steering from Ofgem on the early-stage evaluation course of is because of be printed in Q1 2023 following trade engagement.

Codes and requirements

The ESO is working intently throughout the trade through the OTNR Knowledgeable Advisory Codes and Requirements subgroup to plan, develop and implement the modifications which can be wanted are wanted to the trade codes to permit extra coordinated connection approaches for all tasks.

Generator Commissioning Clause ( GCC ) and inter array techniques

The Division for Vitality Safety and Internet Zero is working intently with Ofgem to assessment the GCC framework for coordinated (non-radial) tasks the place 2 or extra events shall be developing after which utilising the transmission infrastructure and shall be partaking with stakeholders in the end.

Enabling a consenting course of focussed on coordination and scale

Nationwide Coverage Statements

Within the British Vitality Safety Technique, we dedicated to speed up community infrastructure to allow supply of our 50GW offshore wind goal by 2050. To speed up the planning consent course of for community infrastructure to satisfy 2030 targets, we’re amending the power Nationwide Coverage Statements ( NPSs ) to make sure they mirror the strategic significance of community planning and help the wants case for infrastructure; revised NPSs shall be produced and printed following the conclusion of the NPS session.

Consenting and Nationally Important Infrastructure Tasks ( NSIP ) reform

In February 2023, the federal government printed its Motion Plan for NSIP reform, setting out measures to make the NSIP consenting course of quicker, higher, greener, fairer and extra resilient. The federal government shall be consulting on proposed operational modifications to the method, together with a brand new quick monitor consenting route.

Leasing rounds designed with grid and coordination in thoughts (Celtic Sea)

Undertaking companions are already delivering on a few of the reforms, for instance the ESO and The Crown Property and Crown Property Scotland have signed a memorandum of understanding agreeing to collaborate to contemplate grid connectivity in preparation for future leasing rounds. For the primary time, the Celtic Sea leasing spherical is being progressed to align with the community planning.

3. Trying ahead

The necessity for brand new infrastructure improvement, deliberate and delivered in a coordinated and regarded method underpins the priorities of DESNZ ; a give attention to the supply of unpolluted power to the grid and making certain the UK is on monitor to satisfy its legally binding internet zero commitments are key goals. Equally, the 4 core goals of the federal government as outlined within the Powering Up Britain Report of March 2023 give attention to:

Vitality safety: setting the UK on a path to better power independence. Client safety: bringing payments down and retaining them reasonably priced. Local weather safety: supporting trade to maneuver away from costly and soiled fossil fuels. Financial safety: boosting progress and delivering excessive expert jobs for the longer term.

The Electrical energy Networks Commissioner Nick Winser’s forthcoming suggestions will present alternatives for presidency to ship on the imaginative and prescient and actions of the OTNR as a part of the nationwide effort to satisfy our formidable targets for power decarbonisation for internet zero, shopper invoice reductions and power safety.

Appendices

OTNR phrases of reference

The phrases of reference for the OTNR define the aims, method, core outputs and stakeholder involvement for the assessment. Learn the phrases of reference for the assessment.

Record of OTNR outputs

Offshore Transmission Community Assessment organisations