2025-071 Needs Case Review Assessment of Third Window Interconnector Projects

In November 2024, following its Initial Project Assessment (IPA), Ofgem awarded a cap and floor regime in principle to three electricity interconnectors of the Third Window (W3). Ofgem now requires support from a supplier to conduct electricity market modelling to analyse the economic impacts of an interconnector project to ensure it is still offering value for money. The supplier will be required to undertake the analysis for this project under a set of three Future Energy Scenarios (FES) and one weather year.