Seven new interconnectors eligible for ‘cap and floor’ regime

Seven new electricity interconnectors have passed Ofgem’s initial eligibility test for ‘cap and floor’ arrangements, which would guarantee a minimum return for investors and cap profits.
The links are with:
• Belgium: developed by Copenhagen Infrastructure Partners
• Denmark: developed by Copenhagen Infrastructure Partners
• France: developed by AQUIND
• Germany: developed by Copenhagen Infrastructure Partners
• Netherlands: developed by the NU-Link Consortium
• Northern Ireland: developed by Transmission Investment
• Republic of Ireland: developed by MCL
The interconnectors had to be able to go into operation before the end of 2032. They were required to have applied for an interconnector licence. They also had to have a connection agreement for connection prior to the end of 2032, submission material for the initial project assessment (IPA) stage, including indicative costs and plans for obtaining a grid connection and regulatory approval in the connecting country.
The eligibility test preceeds Ofgem’s needs case assessment, which examines whether projects are likely to be in the interest of GB consumers. Ofgem will consult on the interconnectors in late 2023.