Power
Ofgem selects consortium for Dogger Bank B transmission assets
British regulators have chosen a joint venture between Diamond Transmission UK and Chubu Electric Power to manage transmission lines for the major wind project.
Key points
- A partnership of Diamond Transmission UK and Chubu Electric Power was selected by Ofgem.
- The transmission assets are valued at approximately £1 billion by the consortium.
- The selected group will hold the operating licence for twenty-five years.
What happened
British energy regulator Ofgem has designated a joint venture comprising Diamond Transmission UK and Japan’s Chubu Electric Power as the preferred buyer for the high-voltage electrical infrastructure linking the Dogger Bank B wind facility to the national power network, Offshore Energy reported.
The transmission network is valued at roughly £1 billion by the winning bidders. The infrastructure package includes subsea lines, land-based cables, and two converter stations located both onshore and offshore.
According to the reporting, the selection forms part of the eleventh tender round conducted by Ofgem, which commenced in February 2024 before narrowing down contenders later that year. The appointment of the preferred bidder was finalised on November 5.
Project background
Situated roughly 130 kilometres off the eastern coast of Britain, Dogger Bank B represents the second stage of a larger 3.6 GW wind development initiative. Construction activities are currently underway, which include the deployment of wind turbines.
The infrastructure utilises high-voltage direct current technology to move electricity ashore. Installation of the offshore converter platform was completed in April 2024 using a heavy-lift vessel.
Following formal acquisition of the network, the consortium will manage the business operations across a 25-year tenure under an Offshore Transmission Owner licence. Diamond Transmission UK, fully owned by BlackRock's Global Infrastructure Partners, anticipates expanding its portfolio to eleven projects totalling nearly 7 GW of capacity. For Chubu Electric Power, this marks the third British transmission investment following prior collaborations on the Walney Extension and Hornsea 1 developments.
Why it matters
This transaction illustrates how structured regulatory frameworks and independent transmission owner models can successfully attract institutional and international capital into large-scale renewable energy infrastructure. For emerging markets and regions seeking to expand their generation capacity, particularly across parts of Africa where grid bottlenecks often constrain renewable energy integration, the separation of transmission asset ownership from generation provides a useful structural precedent.
While capital markets in Europe benefit from established tender processes that de-risk projects for long-term investors such as pension funds and global infrastructure managers, developing regions face distinct financing and currency challenges. As regulatory bodies in developing energy markets work to expand grid capacity, lessons from these transmission tender rounds can inform frameworks designed to channel private investment into critical network upgrades.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
100.0% of people in Japan had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
