Ofgem has launched its largest-ever tender round for an offshore transmission link, with the assets connecting Hornsea 3 to the British electricity grid estimated to be worth around £3.5bn.
Tender Round 14 of the Offshore Transmission Owner (OFTO) regime opened on Wednesday 21 October 2026. It will allow investors to compete for the right to own and operate the transmission infrastructure serving Hornsea 3, which is under construction in the North Sea more than 100 kilometres offshore.
Transmission assets
Hornsea 3 is due to be completed by the end of 2027 and is projected to generate enough electricity to power 3.3 million UK homes. The transmission assets include subsea cables and offshore and onshore substations.
Under the OFTO model, the successful bidder buys the pre-built assets from the wind farm developer and receives an inflation-linked revenue stream for financing, operating and maintaining them. Licences can run for up to 25 years, subject to asset availability and performance.
Ofgem said the competitive process is intended to attract investment while keeping costs down for consumers and maintaining performance standards.
Beatrice Filkin, Ofgem’s director of major projects, said: “Hornsea 3 is one of the world’s biggest windfarms. The offshore connection linking it to the onshore grid will help deliver home-grown energy to millions of British consumers as well as providing a great long-term opportunity for investors.
“By running a competitive process, Ofgem is helping attract the investment Britain needs for a cleaner, more secure energy system while making sure consumers get value for money.
“We’d encourage any would-be investors interested in finding out more about this major opportunity to get in touch and learn more about the process.”
Growing OFTO market
Since the OFTO regime was launched in 2009, winning bidders have invested more than £10bn in transmission links connecting 28 offshore wind farms, according to Ofgem.
The regulator said further North Sea transmission assets are expected to come to market through the framework. It described the regime as part of the wider modernisation of Great Britain’s energy system, supporting the integration of renewable electricity and reducing exposure to volatile global gas markets.