Hornsea 2 OFTO
OperationalOffshore GridGB1,320 MW220 kV166 km2022
Basic information
9 fieldsAlso Known As
Hornsea Two OFTO · Hornsea Project Two OFTO · Hornsea Project Two Offshore Transmission · HOW02 OFTO · Diamond Transmission Partners Hornsea Two · DTPHT · TR8 Hornsea Two OFTO
Status
operational
Capacity
1,320 MW
Project Company
Type
offshore grid
Transmission Model
Developer Build & Transfer
Expected Life
24 years
Supply Chain (5)
Project Timeline (27)
21 Jul 2023Fid Financial Close
On 21 July 2023, the sale agreement for the Hornsea Project Two offshore transmission assets was formally signed, marking transaction close for OFTO Tender Round 8 and financial close for the Hornsea 2 OFTO. Breesea, Soundmark Wind and Sonningmay Wind – project companies jointly owned by Ørsted (50%) and AXA IM Alts and Crédit Agricole Assurances (jointly 50%) – divested the transmission assets, including the offshore substation, offshore reactive compensation substation, export cables and onshore substation, to Diamond Transmission Partners. Ofgem confirmed a Final Transfer Value of approximately £1.14 billion for the assets, underpinning the regulated revenue stream that Diamond Transmission Partners Hornsea Two Limited will receive under its OFTO licence.
14 Jul 2023Regulatory Other
On 14 July 2023, Ofgem published its final cost assessment for the Hornsea Project Two offshore transmission assets, determining Assessed Costs of £1,141.2 million, which are to be used to set the Final Transfer Value (FTV) at licence grant for the OFTO.
14 Jul 2023Other Permit Awarded
By 14 July 2023, the Gas and Electricity Markets Authority (Ofgem) had granted an offshore transmission licence to Diamond Transmission Partners Hornsea Two Limited for the Hornsea Project Two transmission assets, enabling the consortium to own and operate the Hornsea 2 OFTO and incorporate the assessed transfer value into its regulated tender revenue stream over a 24‑year operational period.
14 Jul 2023Stake Transaction
Ofgem granted Diamond Transmission Partners Hornsea Two Limited (a Mitsubishi Corporation / HICL Infrastructure consortium) a licence to own and operate the 1,320 MW Hornsea 2 offshore transmission assets on 14 July 2023. The transfer value was GBP 1,140 million. Assets transferred from Orsted under Ofgem's OFTO Tender Round 8.
Diamond Transmission Partners acquired from Ørsted (100%)
5 May 2023Regulatory Other
On 5 May 2023, Ofgem published its Draft Cost Assessment report for the Hornsea Project Two Offshore Windfarm Transmission Assets, establishing Assessed Costs of £1,141.2 million. This value, derived after detailed review and adjustments to the developer’s August 2022 Final Transfer Value cost submission, is to be used as the Final Transfer Value (FTV) at licence grant so that the incoming Hornsea 2 OFTO owner can obtain the full benefit of available capital allowances.
Sept 2022Revenue Secured
In September 2022, Ofgem selected Diamond Transmission Partners (a consortium of Mitsubishi Corporation and HICL Infrastructure plc) as the preferred bidder in Offshore Transmission Tender Round 8 to own and operate the Hornsea Two OFTO transmission asset. This selection granted Diamond Transmission Partners the right, subject to licence grant and completion of the asset transfer, to earn a long-term regulated revenue stream over a 24‑year period from operating the Hornsea 2 offshore transmission system.
31 Aug 2022Commercial Operations Full Power
Hornsea 2, the world's largest installed windfarm at 1.3 GW, entered full operation on 31 August 2022. Orsted announced that all 165 wind turbines located 89 km off the Yorkshire Coast were fully operational, with the offshore transmission system including 390 km of subsea export cables delivering power to shore at Horseshoe Point in Lincolnshire.
25 Feb 2022Regulatory Other
On 25 February 2022, Ofgem issued the formal Indicative Transfer Value (ITV) letter for the Hornsea Project Two transmission assets, updating the estimated transfer value to £1,189.5 million. This revised ITV, calculated from a June 2021 cost assessment template and additional analysis including forensic review by Grant Thornton, replaced the Initial Transfer Value for use in Invitation to Tender documentation and informed bidders’ Tender Revenue Stream proposals for the Hornsea 2 OFTO.
13 Dec 2021Procurement Notice
Authority: Ofgem · Licence: Enhanced Pre-Qualification shortlist for Hornsea Project Two OFTO Tender Round 8
On 13 December 2021, Ofgem announced that three bidder groups—Diamond Transmission Partners, Equitix TEPCO Consortium and Transmission Capital Partners—had been shortlisted at the Enhanced Pre-Qualification (EPQ) stage to participate in the Invitation to Tender for the Hornsea Project Two OFTO transmission link under Tender Round 8. This regulatory shortlisting confirmed that all three consortia had passed initial capability checks to own and operate the Hornsea 2 OFTO assets and could proceed to the final ITT stage.
23 Sept 2021Cable Installation Complete
Windpower Monthly reported in September 2021 that Ørsted had recently completed installation of all 390 km of Hornsea Two's export cable system, linking the offshore substation and reactive compensation station to the landfall and onshore transmission system.