Proposed transmission licence exemption for Seagreen Wind Energy Limited: summary of responses and outcome
Updated 15 January 2025
Applies to Scotland
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Summary of responses
We received 3 responses to this consultation, including one from the windfarm operator Seagreen Wind Energy Limited (SWEL), who expressed strong support for the proposed exemption which would expire on the 31 March 2025.
We also received a response from the preferred bidder to become the Offshore Transmission Owner (OFTO) for the project, Equitix Investment Management Limited, Kyuden International Corporation and Kyuden T&D Global CO., Inc. Consortium. They expressed support for SWEL’s request for an exemption to 31 March 2025.
The preferred bidder to become the OFTO expressed understanding that the primary reason for SWEL’s request for extension related to the timelines of their lenders’ due diligence processes, relating to the recent incorporation of the National Energy System Operator (NESO). They confirmed the due diligence requirements of its lenders, explaining the additional requirements were due to NESO’s role in making the Tender Revenue Stream Payments to the project’s OFTO, and the timing of NESO’s formation.
In line with our statutory obligations, we consulted Scottish Ministers and received a response from the Scottish Government. The Minister for Net Zero and Energy expressed support for the proposal to grant a second, time-limited exemption. The Minister welcomed the role of offshore wind in the drive for decarbonisation and achieving net zero targets, and the significant contribution made by Seagreen as Scotland’s largest fully operational offshore windfarm.
Outcome
The Secretary of State has delegated decisions on transmission licence exemptions to Minister Shanks, Minister for Energy.
After careful consideration of the exemption application, the principal objective and general duties under section 3A of Electricity Act 1989, and these representations, Minister Shanks is minded to grant the exemption under the proposed conditions.
Having considered the responses to this consultation, Minister Shanks has determined that an extension to 31 March 2025 is a reasonable and proportionate length of time for the exemption. This will allow sufficient time to complete the due diligence required by the lenders for the preferred bidder to become the OFTO for the project, and the completion of the transaction and asset handover from SWEL. The exemption period allows the necessary additional time for the transfer and the need to complete the transaction in a timely fashion.
The Electricity (Individual Exemption from the Requirement for a Transmission Licence) (Scotland) (Seagreen) (Amendment) Order 2025 will be available on legislation.gov.uk, along with the Explanatory Memorandum.