CREATION OF AN OFFSHORE GRID INFRASTRUCTURE Presentation to BWEA Offshore Wind Conference, 4 March 2004 Richard Mellish, DTI

Offshore Grid - Background Offshore R2 – much bigger scale and concentrated in 3 strategic areas Therefore regulation to ensure: cabling efficient and environmentally sensitive generators have fair and open access to connections

Offshore Grid – Energy Bill Energy Bill introduced November 2003 Provides basic structure of regulation confirms licensing requirement for territorial waters extends regime to Renewable Energy Zones being established through Bill

Offshore Grid – Energy Bill Govt amendments January 2004 allowing transmission and distribution licence conditions to be modified for offshore GBSO role to cover offshore allowing Ofgem to award licences through tenders defining offshore transmission

Offshore Grid - Issues Many including: understanding offshore economics and what that means for regulation different grid plans across Round 2 projects lack of knowledge of what will follow Round 2 wind farms tightness of the timetable

Offshore Grid – Next Steps Preparation of timetable working back from 2007/08 Informal dialogues with generators and wires companies – already started Formal consultations – on licence conditions and tender procedures Major task – but essential that programmes for developing grid and wind farms are taken forward in tandem.