Positive
Project advancing - milestone achieved
High Impact
Major milestone or critical setback
On 2 April 2025, Ofgem published its decision on the further detailed regime parameters for the Offshore Hybrid Asset pilot scheme, setting an adjusted form of the cap and floor regulatory regime for the two Pilot Non-Standard Interconnectors, including Nautilus. The decision confirms higher development risk and construction first-of-a-kind (FOAK) risk premia in the Interest During Construction (IDC) rate to reflect the novel risks of connecting to an offshore HVDC converter station, described as an energy island in the case of Nautilus. Ofgem explains that these parameters respond to developer feedback on risks such as complex multiparty interfaces, coordination with foreign TSOs and authorities, and untested offshore bidding zone market arrangements. Following this decision, the Pilot NSIs, including Nautilus, are expected to proceed with development towards the Final Project Assessment stage, subject to meeting their Initial Project Assessment conditions.