By Nina Chestney
LONDON (Reuters) – Seven bids to build power interconnectors to boost Britain’s energy supply will progress to the assessment stage, market regulator Ofgem said on Friday.
Britain has 6 gigawatts of electricity interconnector capacity with France, the Netherlands, Belgium, Northern Ireland and the Republic of Ireland but it is looking to expand that capacity.
Under the current regulatory framework, a “cap and floor” regime allows developers to identify, propose and build interconnectors, subject to Ofgem approval.
The mechanism regulates how much money a developer can earn once in operation, providing them with a minimum return (floor) and a limit on the potential upside (cap) for a 25-year period.
Ofgem’s third cap and floor window for electricity
interconnectors to be able to start operations before the end of 2032 ran from Sept. 1, 2022 to Jan. 10, 2023.
Seven applications were received, proposing connections between Belgium, Denmark, France, Germany, the Netherlands, Northern Ireland and the Republic of Ireland, Ofgem said.
All projects were successful in fulfilling the eligibility criteria and will now move to the next stage which will involve a case assessment to ensure only projects are approved which are likely to be in the interests of UK consumers, it added.
Ofgem said it plans to consult on these decisions in the latter half of 2023.
(This story has been refiled to remove the extraneous word in paragraph 2)
(Reporting by Nina Chestney in London and Muhammed Husain in Bengaluru; Editing by Louise Heavens)
