It is difficult to overstate the importance of the BEIS consultation on the Offshore Transmission Network Review.  The consultation closes on 23rd November but it signals a potentially far reaching review and change in the way offshore transmission is planned, developed and delivered.  In turn it will could have material effects on those developing all energy projects offshore, (albeit that the consultation seems to concentrate on offshore wind without considering what it might mean for other energy sources such as tidal, wave etc.).

BEIS has signalled that the consultation will consider the whole approach to offshore energy development from leasing of seabed, through grid, planning, awards of CfDs and transmission charging.  It wants this review to have been completed and implemented for the next round of offshore wind leasing i.e post Round 4.

There is an undoubted logic to the review as it is clear that with more offshore energy required for Net Zero, there will be pressures on offshore cabling and transmission connections and constructing individual project transmission links time and again, is going to place huge pressure on the environment and local communities.  If the changes which flow from the review work and the aims are achieved, it will likely be very beneficial for all. However, developers and offshore energy investors will need to think very carefully about how these proposals may play out.  A few observations to get the ball rolling and in no particular order of importance;

• Will this delay the next seabed leasing rounds and if so what does that mean for floating wind which is just starting to get going?
• There is talk about merging the award of a seabed lease with the award of a CfD, if so, what will that mean for CfD auctions as we know them?  Will there still be a CfD for other technologies onshore? Will that be run at different times?
• Where is the discussion on the other offshore energy technologies?
• What is the UK’s record on offshore strategic plans in terms of timing and deliverability?
• If multiple assets will share connections, what does that mean if one or more of those projects is delayed or not delivered?
• Who is going to cover any anticipatory investment in transmission?
• The list of entities and organisations, NGESO, The Crown Estate, Crown Estate Scotland,  Welsh Government, Scottish Government, national consenting bodies, Ofgem etc.etc. that would need to be brought together under a single vision is huge….. So what does that mean in the short to medium term, for project timings and deployment?  To hit our Net Zero target the projects need to be continually coming through and being delivered.   

Burges Salmon regularly advises offshore energy projects on the legal and regulatory aspects of transmission and development.  If you wish to discuss any of the above in the context of your offshore energy plans contact the Renewable Energy Team and/or Ross Fairley (Ross.Fairley@Burges-Salmon.com)