Source: https://tendernation.io/opportunities/01a13ca1-9cf2-718f-8ccb-b49e28149fb6/2021-175-interconnector-policy-review awarded GB open procedure Suitable for SMEs # 2021-175 Interconnector Policy Review [Ofgem](https://tendernation.io/buyers/ofgem) Estimated value £69,900 Published 23 Feb 2022 Deadline Closed 24 Jan 2022 ## Who can bid - Buyer says suitable for SMEs The buyer ticked “suitable for SMEs” on the notice. Anyone can still bid. - Small contract value Valued under £135,018 including VAT, the lowest Procurement Act threshold for goods and services. - Open procedure Anyone can submit a full tender; there is no shortlisting stage. [More contracts for small businesses and VCSEs](https://tendernation.io/opportunities/for-small-businesses) ## About this tender On 13 December 2021 Ofgem published its decision on the interconnector policy review. That decision set out the next steps for GB interconnector regulation for the future, specifically with intent to open a third cap and floor window application round for interconnectors and a cap and floor pilot for multiple-purpose interconnectors (MPIs) in mid-2022. Ahead of those milestones Ofgem will be finalising details of the process and policy during an implementation period - one of those policy areas is how Ofgem assess the needs case of future interconnectors. In the cap and floor regime consumer underwrite interconnectors when their revenues fall beneath a floor level, and money is returned to consumers when those revenues fall above the cap. It is therefore crucial that Ofgem is able to fully understand the impact of future projects on consumer interests. Ofgem concluded through the interconnector policy review that Ofgem should review and update its needs case assessment framework to reflect the full range of impacts of interconnection. Ofgem therefore require consultancy support to help develop this framework for assessing new interconnectors and multiple-purpose interconnectors at the initial project assessment (IPA) stage of the cap and floor regime. Specifically, Ofgem requires: - An interconnector and MPI needs case assessment framework that enables effective and transparent decision making by Ofgem on whether specific projects should be awarded a cap a...ime. - Appropriate indicators and detailed methodologies for the assessment of the impact of specific interconnectors and MPI on the following impact categories; market flows of electricity (socio-economic welfare), network costs (reinforcements), system operability impacts (including ancillary services), decarbonisation, flexibility, security of supply, and competition. - Where possible, these methodologies should enable the quantification and monetisation of the relevant impacts, and the ability to unify those quantified impacts into a cost-benefit analysis. Where not possible, Ofgem expects this methodology to set out the relevant parameters of individual quantitative or qualitative assessment. - A recommendation of the roles and responsibilities within the needs case framework within the context of the cap and floor regime IPA. Specifically, the parties best placed to implement each methodology, for example: Ofgem, independent consultants, the ESO, or the project developer. - A recommendation of the best data sources to lean to inform those methodologies, for example: public data sets, network planning outputs or information provided by project developers. This should include a definitive list of submission materials from project developers to inform the needs case assessment. - The needs case framework should clearly set out how the outputs of each methodology should be combined in order to make a decision on whether a project is in consumers' interest. Read full description ## CPV classification Electricity, heating, solar and nuclear energy Source Contracts Finder (UK) [View official notice](https://www.contractsfinder.service.gov.uk/notice/c4b4af70-34af-47f5-a1c7-5b8f77294c48) Never miss a tender like this again Get AI summaries, deadline alerts and a bid pipeline for tenders matched to your business. Free to start. 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