Ofgem has today invited bids to support the development of new interconnectors.

The energy regulator is expected to hold a third investment round next year to develop new projects that could import renewable energy at a lower cost and export surplus power to neighbouring countries.

Ofgem will run the process under its ‘cap and floor’ regime – that means a maximum ‘cap’ on revenues and a minimum ‘floor’ of returns for investors are set to keep costs down for energy customers.

Today’s announcement underpins the government’s pledge to more than double existing interconnector capacity by 2030.

That is why the new investment round will favour projects able to be built in the next nine years.

Akshay Kaul, Director of Networks at Ofgem, said: “Greater interconnection of energy across borders is vital to ensure resilience, affordability and sustainability in the future as we transform our energy system.

“Our next investment round for interconnectors will bring forward the investment we need, creating green jobs and unleashing the full potential of the UK’s world leading offshore wind industry, while also protecting customers by capping costs.”

Currently, Britain benefits from the operations of seven interconnectors that provided almost 7% of the UK’s electricity last year.