Notice

Notice of proposed transmission licence exemption for Dogger Bank A

Updated 19 November 2025

Applies to England

Summary of responses

We received two responses to this consultation, including one from the wind farm operator, Dogger Bank Offshore Wind Farm Project 1 Projco Ltd., which expressed strong support for the request for an exemption to 18 December 2026.

We also received a response from the preferred bidder to become the OFTO, Equitix Investment Management Limited, Kyuden International Corporation and Kyuden T&D Global CO., Inc. Consortium. They also expressed  support for the proposed exemption. They highlighted the necessity of an exemption to provide time to enable them to complete their due diligence, including elements that can only take place once they are able to confirm the technical integrity of the transmission assets through high and sustained loading of the offshore export cables.

In line with our statutory obligations, we consulted Scottish Ministers but did not receive a response.

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. He has determined that an extension to 18 December 2026 is a reasonable and proportionate length for the exemption. This will allow sufficient time to complete the installation and commissioning of the wind turbines at Dogger Bank A and then to undergo compliance testing so that the asset can be transferred.

The Electricity (Individual Exemption from the Requirement for a Transmission Licence) (Dogger Bank A) (Amendment) Order 2025 is now available on legislation.gov.uk, along with the Explanatory Memorandum.

General information

Why we are consulting

We are seeking views on a proposed time-limited exemption from the requirement to hold a transmission licence in respect of the Dogger Bank A Offshore Wind Farm owned and operated by Dogger Bank Offshore Wind Farm Project 1 Projco Ltd.

Consultation details

Issued: 16/09/2025

Respond by: 14/10/2025

Enquiries to: essupport@energysecurity.gov.uk

Territorial extent: Great Britain, including the devolved administrations.

How to respond

Email to: essupport@energysecurity.gov.uk

Confidentiality and data protection

Information you provide in response to this consultation, including personal information, may be disclosed in accordance with UK legislation (the Freedom of Information Act 2000, the Data Protection Act 2018 and the Environmental Information Regulations 2004).

If you want the information that you provide to be treated as confidential please tell us, but be aware that we cannot guarantee confidentiality in all circumstances. An automatic confidentiality disclaimer generated by your IT system will not be regarded by us as a confidentiality request.

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Quality assurance

This consultation has been carried out in accordance with the government’s consultation principles.

If you have any complaints about the way this consultation has been conducted, please email: bru@energysecurity.gov.uk.

The proposals – Notice of proposed transmission licence exemption

EXEMPTION FROM THE REQUIREMENT FOR A LICENCE TO TRANSMIT ELECTRICITY: PROPOSAL TO MAKE THE ELECTRICITY (INDIVIDUAL EXEMPTION FROM THE REQUIREMENT FOR A TRANSMISSION LICENCE) (DOGGER BANK A) (ENGLAND) (AMENDMENT) ORDER 2025

Summary

This consultation seeks views on our proposal to extend by 364 days the current exemption from the requirement to hold a transmission licence for the Dogger Bank A Offshore Wind Farm owned and operated by Dogger Bank Offshore Wind Farm Project 1 Projco Ltd.

Proposal

The Secretary of State (SoS), pursuant to sections 5(2) and 5(3) of the Electricity Act 1989 (the Act), hereby gives notice of a proposal to make an order under section 5(1) of the Act granting exemption from the requirement to hold a transmission licence under section 4(1)(b) of the Act to the following wind farm owner currently in the process of transferring transmission assets under the Offshore Transmission Owner’s (OFTO) regime:

Dogger Bank Offshore Wind Farm project 1 Projco Ltd. (company number 07791991), with registered office address: No.1 Forbury Place, 43 Forbury Road, Reading, United Kingdom, RG1 3JH in respect of the Dogger Bank A wind farm, ‘DBA’, with an overall capacity of up to 1.2GW. DBA is 131 km off the east coast of England in the North Sea with its central point approximately at Longitude 1° 51.268 and Latitude 54° 46.995.

Legislative background

Section 4 of the Act sets out the activities for which licences are required, which includes the transmission of electricity. It specifies that an offence is committed if these activities are carried out without a licence. A transmission licence is granted by the Authority (the Gas and Electricity Markets Authority, hereinafter referred to as Ofgem) under section 6(1)(b) of the Act. “Transmission” and the relevant term “transmission system” is defined in section 4.

Section 5 of the Act grants the SoS powers to grant exemptions from the requirement to hold various types of licences, including a transmission licence. Section 5(1)(c) allows the SoS to specify conditions that apply to exemptions. The exemption can be revoked if it appears to the SoS inappropriate that the exemption should continue to have effect, as set out in section 5(8).

Sections 6F and 6G of the Act allow offshore generators to transmit electricity without an offshore transmission licence subject to certain conditions, including the condition that the transmission takes place during the ‘commissioning period’. The commissioning period is defined as the period before and during the 18 months beginning on the day the National Energy System Operator (NESO), formerly National Grid Electricity System Operator (NGESO), gives a completion notice to Ofgem.

Unlicensed transmission by an offshore generator after the end of the commissioning period is an offence under section 4(1)(b) of the Act, unless an exemption from the requirement to be licensed is granted.

Policy background and reasons for proposed order

The transmission cables linking offshore wind farms are licensed through a competitive regime. While the transmission assets can be built and tested by the OFTO itself (under the OFTO build option), all projects so far tendered have been built and tested by generators (under the generator build option).

Under this option, the transmission assets are built by the offshore wind developer in parallel with construction of the wind farm array. Once complete, Ofgem runs a tender to select the OFTO who will own and operate the transmission assets for a specified period. The OFTO will then pay the generator the transfer value (determined by Ofgem through an open methodology) and will take ownership and responsibility for the operation of the transmission asset in return for a fixed revenue stream for the specified period.

Through this process we have introduced an important element of competition to the sector, which has been estimated to have delivered £700m of savings over the first £3.1bn worth of assets tendered.^{[footnote 1]}

The OFTO regime in the Act contemplates that the transmission asset is transferred to an independent OFTO within 18 months of the completion of the project.^{[footnote 2]} This 18-month commissioning period allows for the technical demonstration of the asset to potential bidders, gives time for Ofgem to run a tender process and select a preferred bidder for the OFTO, and provides time to finalise commercial negotiations ahead of transfer.

Beyond this 18-month commissioning period the generator is not legally able to continue transmitting electricity, as doing so would constitute the transmission of electricity without a licence, which is an offence under section 4(1)(b) of the Act. There is legislation currently in the Planning and Infrastructure Bill before parliament which would increase this period to 27 months, in recognition that the increased size and scale of wind farms since the OFTO regime was introduced, means longer is needed for them to divest their transmission assets to an independent OFTO.

Dogger Bank Offshore Wind Farm Project 1 Projco Ltd was previously granted an extension to their commissioning period on 9 February 2024 for 10 months and ten days. The reason for this extension was that DBA had experienced unforeseen and significant technical issues which had impacted the pace of wind turbine installation and, in turn, the power ramp-up required to test the OFTO assets fully. The additional time was sought to progress the installation and commissioning of the wind turbines and then to undergo a compliance testing so that the asset could be transferred.

However, in August 2025 Dogger Bank Offshore Windfarm Project 1 Projco Ltd sent a formal request to the Department for Energy Security and Net Zero (the ‘Department’) and to Ofgem for a Section 5 transmission licence exemption of a further 364 days. The additional time was requested as the project has seen cascading impacts from the initial technical issues, and additional unforeseen knock-on impacts while acting to rectify the causes of the initial delay. DBA suffered two separate blade failures in 2024, which slowed construction whilst investigations were undertaken to identify the cause of the faults. In 2025, further significant technical issues arose during turbine installation and commissioning on DBA, including issues which led to safety stoppages, as well as unforeseen issues with availability of key assets. Together, these created unforeseen construction delays during the summer, when DBA had planned significant turbine construction to rectify the previous delays caused by the turbine blade failures. DBA lost a significant number of days over the summer due to a combination of these issues, which they do not expect to be repeated in the future. These lost days had a direct impact on the testing of the transmission assets, and DBA have not yet been able to test the transmission assets at a high enough power level to undertake grid code compliance.

DBA is the UK’s first deployment of an HVDC transmission system by an offshore wind asset, and the world’s first unmanned offshore HVDC platform. Innovative projects are likely to experience unforeseen technical issues, therefore the estimated timeline DBA have provided for this exemption includes some contingency for potential delays given the size and novelty of DBA. The Department is inclined to provide DBA with a transmission licence exemption on the grounds that the technical issues were unforeseeable and have had a very significant impact on DBA’s ability to transfer assets to the preferred bidder. DBA have provided a high confidence timeline for the OFTO transfer by December 2026.

Existing guidance on licence exemptions

In August 2023, the Department published a guidance note for individual offshore Transmission Licence Exemptions.^{[footnote 3]} The guidance states transmission is a licensable activity under Section 4 of the Act, and that engaging in transmission in the absence of a licence or exemption is an offence. Under section 5 of the Act, the SoS has the power to grant exemptions from the requirement to hold an offshore transmission licence, and to impose conditions on that exemption. Offshore transmission licence exemptions follow a statutory process set out in the Act, which includes a 28-day public consultation and Secondary Legislation laid in Parliament.

Should the SoS receive an application for an offshore transmission licence exemption, the SoS will assess any application fairly and reasonably, using the guidance note. They will consider the principal objective of protecting the interests of existing and future consumers wherever appropriate by promoting effective competition. They will also consider the need to ensure security of supply and the need to contribute to the achievement of sustainable development. In the absence of an exemption, developers must bear the risk, so it is imperative that sufficiently persuasive reasons are put to the SoS.

The guidance note states DESNZ would consider an exemption application made by a developer in exceptional circumstances, and highlights three categories of exceptional circumstances. These are: Unforeseen and Significant Technical Issues, Coordinated Projects, and Innovative Projects.

Since 2023, the SOS has granted the following exemptions :

• In 2023, the SoS for DESNZ granted an exemption to Moray East Offshore Wind Farm. in respect of Moray East Offshore Wind Farm after the wind farm suffered a fault with one of its export cables.

• In 2024, the SoS for DESNZ granted an exemption to Seagreen Offshore Wind Farm as a result of the technical problems they had experienced with cable burial

• In 2025, the SoS for DESNZ granted a second exemption to Seagreen Offshore Wind Farm to account for delays in the final transfer instigated by the unique commercial circumstances surrounding the Government’s creation of NESO. The transmission assets were transferred to the OFTO in February 2025.

• In 2025, the SoS for DESNZ granted an exemption to Dogger Bank A Offshore Wind Farm following unforeseen technical issues as a result of blade failures which delayed construction.

The Secretary of State’s Principal Objective

In carrying out functions under Part 1 of the Act (including considering granting any exemption from the requirement to hold a transmission licence), the SoS is required under section 3A(1A)(a) to consider the principal objective of protecting the interests of existing and future consumers in relation to electricity conveyed by distribution systems or transmission systems. The interests of existing and future consumers are their interests taken as a whole, including their interests in the SoS’s compliance with the duties in sections 1 and 4(1)(b) of the Climate Change Act 2008 (net zero target for 2050 and five-year carbon budgets). The SoS shall carry out their functions under Part 1 in the manner which they consider is best calculated to further the principal objective, wherever appropriate by promoting effective competition, and must have regard to the interests in section 3A(2), including the need to contribute to the achievement of sustainable development.

If the SoS were not to provide an exemption, we anticipate that Dogger Bank A could cease operation on or immediately after 19 December 2025, as to continue transmission of electricity without a licence or an exemption would be unlawful.

In the absence of compelling reasons to the contrary, the SoS considers it to be in the public interest for offshore wind generation to be transmitted to shore so that it can reduce the overall level of greenhouse gas emissions from the power sector, supporting the government’s Clean Energy Superpower mission, and contribute to a diverse and secure supply of electricity. Furthermore, the SoS is satisfied that there would be no material distortions to competition and no unfair economic advantage to be gained if an exemption were granted.

Providing an exemption would directly support future reductions in greenhouse gases by demonstrating to investors and developers that offshore wind farms can continue to transmit low carbon power to the grid for the limited time required for the transfer of transmission assets to be completed. Enabling offshore wind generation to be lawfully transmitted to shore will help reduce emissions in line with carbon budgets set under the Climate Change Act 2008 as well as reducing dependence on imported fossil fuels to generate electricity.

In determining the length of any proposed exemption, the SoS will consider the delays experienced and expected by DBA resulting from the additional delays they have experienced remediating the impact of past turbine blade failures and completing installation of turbines, and commissioning of the transmission assets. SoS will also consider the contribution that DBA will make to security of supply of electricity and the reduction in costs to consumers as a result of displacing more expensive forms of generation.

Therefore, in line with the Government’s Clean Energy Superpower mission, including delivering Clean Power by 2030, as well as its efforts to increase domestic production of electricity and reduce reliance on energy imports, the SoS is minded to use the powers conferred by section 5 of the Act to grant Dogger Bank A a time-limited exemption from the requirement to hold a transmission licence. We propose granting a time-limited transmission licence exemption to 18 December 2026, in line with Dogger Bank Offshore Wind Farm Project 1 Projco Ltd’s request.

Terms of proposed exemption

The Department has considered whether the terms of the exemption should include conditions that prevent generators from gaining any unfair commercial advantage as a result of being granted an exemption. In creating the proposed exemption, the Department has taken into consideration:

• Strict time limits: The duration of the proposed exemption will be strictly time limited. An expiry date would be included in the exemption order and the exemption would automatically expire if the transfer to the OFTO is completed before that date. The SoS considers that a proposed exemption running to 18 December 2026 is appropriate to account for the delays to the process, and to allow Dogger Bank A and the OFTO time to complete installation and commissioning of the wind turbines, and to carry out the required compliance testing.

• Commercial advantage: In considering the best approach to take to address this issue the SoS has considered whether there would be any financial advantage that could be enjoyed by a generator in receipt of a time-limited exemption, for example, through Transmission Network Use of System (TNUoS) charges or through the avoidance of paying a licence fee. The conclusion is that there is no material advantage.

• Interaction with other policies: The SoS also considered whether there would be any unintended interactions with other policies that could adversely affect the achievement of our objectives in other areas, which might justify imposing conditions. No issues were identified.

Therefore, the SoS does not consider it necessary for the exemption to be subject to conditions. Dogger Bank Offshore Wind Farm Project 1 Projco Ltd will still be required to comply with its obligations under its generation licence, meaning it will continue to adhere to the codes of conduct, industry agreements and behavioural conventions. The SoS notes that there are economic incentives on Dogger Bank Offshore Wind Farm Project 1 Projco Ltd to complete the transfer and expects it to work towards a transfer as soon as possible and to report to the Department for Energy Security and Net Zero on progress towards this.

Summary

We invite views from interested parties on a proposal for the SoS to use powers under the Electricity Act 1989 to grant an exemption from the requirement to hold a transmission licence to Dogger Bank A to expire on 18 December 2026, 364 days after the conclusion of the current transmission licence exemption period, and 22 months and 9 days after the original commissioning period started.

1. Tendering regime reduces the cost of connecting offshore wind farms by at least £700m - Ofgem ↩

2. For these purposes, ‘completion’ refers to the date that the National Electricity System Operator (NESO) gives Ofgem a ‘completion notice’ in relation to the project. ↩

3. Guidance Note for Offshore Transmission Licence Exemptions ↩