Initial Project Assessment for the Offshore Hybrid Asset Pilot Projects - decision
Summary
Ofgem Initial Project Assessment decision on the Offshore Hybrid Asset (OHA) Pilot Projects. OHAs combine interconnector capacity with offshore wind generation in a single asset (the predecessor to MPIs).
Why it matters
First IPA decision for the OHA Pilot programme. Companion to the July 2024 Nautilus consultation and the March 2026 MPI market arrangements decision. Sets the precedent for how hybrid offshore assets are regulated under the cap-and-floor regime.
Areas affected
Memo
Initial Project Assessment for the Offshore Hybrid Asset Pilot Projects - decision | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Initial Project Assessment for the Offshore Hybrid Asset Pilot Projects - decision Publication type: Decision Publication date: 12 November 2024 Topic: Offshore electricity transmission, Electricity interconnectors Decision for: Initial Project Assessment of the Offshore Hybrid Asset pilot projects Changes to the Initial Project Assessment of the Nautilus Offshore Hybrid Asset Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Offshore Hybrid Assets combine interconnection with the transmission of offshore wind, providing the potential for coordination and efficiency benefits compared to standalone point-to-point interconnectors and radial offshore wind connections. The application window for the Offshore Hybrid Asset regulatory pilot scheme closed in October 2022. Two projects were were assessed under the Initial Project Assessment: LionLink, to the Netherlands, a proposed 1.8GW connection to an offshore converter station on a Dutch offshore transmission platform; and Nautilus, to Belgium, a proposed 1.4GW connection to an offshore converter station on the Princess Elisabeth Belgian energy island. The Initial Project Assessment considers the needs case of the projects for GB consumers, and assesses whether to award the projects a regulatory regime in principle. We consulted on our minded-to position on the Nautilus and LionLink projects in March-May 2024. We consider that both Nautilus and Lion Link are likely to be in the interest of GB consumers, and therefore we have decided to grant these projects a Pilot OHA regulatory regime in principle. We have conducted further analysis to address stakeholder feedback. The rationale, methodology and results of that analysis, are contained within the decision document. Main document OHA Pilot IPA Decision [PDF, 1.33MB] Subsidiary documents NESO System Impacts Analysis November 2024 [PDF, 10.69MB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close