The Energy Transition | Ofgem consults on self-building transmission connections across Britain

This week's edition looks at Ofgem's latest consultation on proposals for self-building transmission connections and RenewableUK's snapshot of the global floating offshore wind market in 2026.

Ofgem proposes wider choice for self-build transmission connections

Ofgem has published a consultation seeking feedback on proposals to give demand, generation and storage customers more choice in their transmission system connection as part of the "connect" pillar of GB demand connections reform.

Under the proposals, customers with sole-use connections will be able to self-build and transfer from the point of connection to the transmission system. A sole-use connection is one bilateral connection agreement between a customer and the National Energy System Operator. This would allow customers to undertake contestable works and build connection assets independently of the transmission owner. 

At present, self-build and transfer arrangements are limited to within 2km of the existing transmission system, which limits the use of self-build and transfer for the majority of connecting customers. The new proposals would remove this 2km restriction and allow customers to transfer assets to an independent transmission owner. That would require a new regulatory framework to be created alongside the pre-existing Competitively Appointed transmission Owner regime.

The Ofgem consultation notes that stakeholders consider that the self-build and transfer model has the potential to result in "cost savings in the region of 20% and time savings of between one to two years if no reinforcement work is needed". The proposals include mitigation measures to guard against the risk of inefficient design, substandard assets and greater consumer costs. 

Driving the proposals is the growing number of data centre projects with co-located storage seeking to connect at transmission level. In Ofgem's view, expanding the scope of self-build and transfer will help delivering these projects and supporting economic growth across Great Britain.

Ofgem has opened the consultation to any interested parties until 13 November. Ofgem expects to publish its decision in the first quarter of 2027.

UK ranks third in race for global floating offshore wind capacity

The UK's floating offshore wind (FLOW) capacity is now the world's third largest with 78 megawatts (MW) of installed projects, according to the industry trade body RenewableUK's latest EnergyPulse report. 

Two installed FLOW projects, the 30MW Hywind and 48 MW Kincardine sites off Scotland, give the UK an operational portfolio that is currently only exceeded by Norway followed by France.

The RenewableUK report projects cumulative FLOW build-out of 274 MW by the end of 2030, 1 GW by 2032 and up to 3GW by 2034. On that trajectory, the UK would account for 85% of Europe's FLOW capacity by 2034, according to the report.

The Green Volt (approximately 560 MW), Erebus (100 MW) and Pentland (92.5 MW) projects, which have already secured Contract for Difference (CfD) awards in Allocation Rounds (AR) 6 and 7, are among those contributing to the expected FLOW build-out in the UK by the early 2030s. 

The industry is now looking to the CfD's AR8. The round's "pot 4", which comprises FLOW and other deep offshore wind, will again have a separate budget, though its size has not yet been announced. Up to 832 MW will be eligible for AR8, across five projects: Caledonia South (under 500 MW), Llŷr 1 (100 MW), Salamander (100 MW), White Cross (100 MW) and Twinhub (32 MW). RenewableUK reports that nearly 14GW of FLOW capacity, all of which is in Scotland, is progressing through the offshore planning system. 

RenewableUK also forecasts that global floating wind capacity could reach 1.7GW by the end of 2030. However, China, with an operational portfolio that is currently fourth in the global ranking at 72MW, is expected to dominate the global picture by the end of 2030, accounting for around 66% of operational FLOW capacity worldwide against the UK's projected 16%.  

This article was written with the assistance of solicitor apprentice Ellie Cockford and trainee solicitor Rani Mandalia.