Ofgem opened the Hornsea 3 transmission tender on 21 October 2026, seeking an investor to acquire and operate the wind farm’s grid connection. The transmission assets have an estimated value of £3.5 billion.
Designated Tender Round 14, the competition is being conducted through the Offshore Transmission Owner (OFTO) framework. It covers the infrastructure carrying electricity from Hornsea 3 to Britain’s onshore network.
The selected bidder will finance, operate and maintain infrastructure built by the developer, including cables and substations at sea and on land. Under the framework, the developer transfers the relevant assets to the successful bidder alongside the award of an offshore transmission licence.
Revenue is linked to inflation for a period of up to 25 years. Payments depend on the assets remaining available and satisfying performance requirements.
Hornsea 3 is under construction in the North Sea, more than 100 kilometres from shore. Ofgem expects completion by the end of 2027 and projects electricity generation equivalent to the needs of 3.3 million UK homes.
Beatrice Filkin, Ofgem’s Director of Major Projects, said competitive bidding was intended to attract investment while securing value for consumers. The regulator said the process also aimed to maintain high standards of performance.
Winning bidders have invested over £10 billion in connections serving 28 offshore wind farms since the OFTO regime began in 2009. Ofgem expects further North Sea transmission assets to become available through the framework.
