Ofgem Proposes Reforms to OFTO Build Models for Offshore Transmission
Ofgem is consulting on new early and late competition models for Offshore Transmission Owner (OFTO) build, with the consultation closing on July 2, 2026. The proposed changes aim to enhance coordination in offshore wind development and address current regime inefficiencies, impacting capital allocation and risk management for developers and OFTOs.
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Ofgem has initiated a consultation on reforming the Offshore Transmission Owner (OFTO) build models, focusing on early and late competition frameworks. The early competition model proposes selecting OFTOs before the design and construction phases begin, potentially leading to better risk management and reduced upfront funding needs for developers.
The consultation will close on July 2, 2026, allowing stakeholders to respond to proposals that aim to improve offshore transmission asset delivery and align with the Centralised Strategic Network Plan (CSNP). Reforms address structural issues, cost uncertainty, and the need for coordinated offshore networks, which are essential as offshore wind projects grow in scale. These changes may reshape the financing landscape for offshore wind projects, balancing risk between developers and OFTOs while improving overall market efficiency.
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