13 bidders have been selected to take part in an auction for over £1.15 billion (€1.25 billion; $1.8 billion) of electricity transmission assets in the UK.
The tender process, which is being handled by UK energy regulator Ofgem, will see the firms bid to own and operate nine high-voltage electricity links with offshore windfarms. The nine projects have a combined asset value of over £1.15 billion and combined capacity of 2,064 megawatts.
Ofcom said in a statement over £15 billion of total investment is required in the UK’s transmission links to offshore windfarms.
Only one of the nine assets, located off Barrow, is currently operational. One of the assets still in development, the 504-megawatt Greater Gabbard project, being developed by SSE/Airtricity and RWE Innogy, has the highest estimated value of the assets, at £344 million.
Winning bidders for the assets are expected to be selected in March or April next year.
A second round of contracts is then set to be put out to tender next summer.