Document summary
Offshore transmission owner (OFTO) projects are playing an important role in meeting the U.K. government's target of providing, by 2020, 15% of country's energy needs from renewable sources by operating and maintaining the infrastructure that connects offshore wind projects to the onshore electricity transmission grid. The OFTO project sector is rapidly evolving, having committed more than £2 billion of investment since 2009. By 2020, the Office of Gas and Electricity Markets (Ofgem), the U.K. energy regulator, expects OFTO project investment to rise to £8 billion, with a total potential market of up to £15 billion. This report examines the difference between OFTO projects, regulated energy networks as well as PPP projects and addresses frequently asked questions from investors regarding the key credit features of these projects.