OTC Presents New Framework to Enable Cross-Border Offshore Grid and Energy Security in Europe

The CEOs of the Offshore TSO Collaboration presented an enhanced concept in Hamburg today. Photo: Kati Jurischka

(IN BRIEF) The Offshore TSO Collaboration has presented recommendations at the North Sea Summit outlining how regional planning, shared financing, and innovative cost-allocation models can enable Europe’s first integrated offshore grid. By coordinating cross-border hybrid connections and flexible financing solutions, the OTC aims to unlock up to 1,000 TWh of clean electricity from the North Seas by 2050, strengthening Europe’s energy security and climate goals. The proposed approach combines investment certainty with long-term flexibility, creating a viable framework for delivering large-scale offshore infrastructure across multiple countries.

(PRESS RELEASE) HAMBURG, 26-Jan-2026 — /EuropaWire/ — The Offshore TSO Collaboration (OTC) has presented a new set of recommendations aimed at enabling Europe’s first integrated offshore grid, bringing together regional planning, cost sharing, and innovative financing models to make large-scale cross-border energy infrastructure projects feasible. Unveiled at the North Sea Summit in Hamburg in the presence of heads of state, government leaders, and energy ministers from North Sea coastal countries, the recommendations outline a coordinated pathway toward greater energy security, climate neutrality, and long-term independence for Europe.

The OTC’s analysis highlights the strategic role of the North Seas in Europe’s energy transition. By 2050, offshore wind resources in the northern seas could generate up to 1,000 terawatt hours of clean electricity, equivalent to around 40 per cent of Europe’s total electricity demand. Realising this potential will require a shift away from isolated national solutions toward a regionally planned, interconnected offshore grid that enables shared use of infrastructure and resources across borders.

At the core of the OTC’s approach is regional planning as the foundation for an integrated offshore grid. The collaboration promotes the development of hybrid connections that link offshore wind farms to multiple countries simultaneously, complementing existing national transmission lines. Joint analyses conducted by the OTC demonstrate that a coordinated regional approach can deliver lower overall costs, higher system efficiency, and improved security of supply. A grid map developed by the alliance has already identified concrete cross-border projects in the North Sea, Irish Sea, and Celtic Sea that could provide tangible benefits to consumers in all participating countries.

Financing and cost allocation are identified as critical challenges for delivering offshore mega-projects. Differences in ownership structures, regulatory regimes, and revenue models among transmission system operators mean that no single financing solution can be applied universally. In response, the OTC is developing flexible models for multilateral cooperation and joint cost sharing, designed to support investment decisions and project delivery. These models bring together planning, financing, and regulatory coordination in a single integrated process involving governments, national regulators, and TSOs.

The proposed financing toolbox includes a mix of public and private instruments, such as public loans, private capital, green bonds, guarantees, hybrid financing structures, and targeted grants to address funding gaps. The OTC emphasises that stable, long-term regulatory frameworks and cost-sharing agreements are essential to reduce capital costs, distribute risk appropriately, and mobilise private investment at scale.

To address long-standing concerns around fair cost allocation, the OTC proposes a combined ex-ante and ex-post methodology. Under this approach, participating countries agree on cost shares before construction based on jointly modelled scenarios, providing early investment certainty. After commissioning, these shares can be adjusted using real operational data to reflect actual system benefits. By combining predictability with flexibility, the model aims to unlock investment while ensuring a fair distribution of costs and benefits over time.

Alongside grid development, the OTC is strengthening cooperation with offshore wind developers, infrastructure operators, and the hydrogen sector to ensure alignment across the wider offshore energy value chain. Together, these measures are intended to accelerate the creation of a resilient, interconnected offshore energy system capable of underpinning Europe’s long-term energy transition.

The solutions within the financing toolbox should comply with the following principles:

1. Reduction of capital costs
2. Use of existing processes and funds
3. Appropriate risk distribution
4. Consideration of differences in regulation, ownership and project characteristics
5. Promotion of private capital

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Notes to the editors:
OTC – a technical response to Europe’s energy policy goals
The political starting signal was given in 2022 at the Esbjerg Summit in Denmark, when European heads of state and government formulated a joint offshore vision for the North Sea. Inspired by this momentum, the North Sea TSOs joined forces to form the OTC – a self-initiated alliance that translates political ambitions into practical, technical solutions. Since then, the OTC has established itself as a key partner, supporting European policy with reliable analyses, regionalplanning proposals and practical concepts.

Through its ongoing work, the OTC is helping to translate Europe’s energy policy goals into feasible projects, thereby laying the foundation for successful European offshore expansion.

The proposed measures and next steps were presented by the CEOs of the OTC TSOs at a press conference: Manon van Beek, CEO of TenneT Holding; Bernard Gustin, CEO of Elia Group (Elia Transmission Belgium & 50Hertz); Thomas Egebo, CEO of Energinet; Tim Meyerjürgens, CEO of TenneT Germany; Michael Mahon, Chief Infrastructure Officer of EirGrid; Elisabeth V. Vardheim, CEO of Statnett; Fintan Slye, CEO of NESO; Christoph Müller, CEO of Amprion; Ben Wilson, President of National Grid Ventures; and Khalid Abdallaoui, Director of Interconnections & Offshore Grid at RTE France.

Press contact: Contact the OTC partners directly or
Mathias Fischer, Press Spokesperson/Media Relations, TenneT, mathias.fischer@tennet.eu

About the Offshore TSO Collaboration (OTC):
The OTC was established in 2022 and consists of TSOs from the Northern Seas which are working together to develop a sustainable offshore network infrastructure. The OTC’s aim is to establish the North Sea as a hub for renewable energy and support Europe’s energy security and decarbonisation objectives. These companies work together to drive the development of offshore grids in the North Sea, supporting the political goals set by the Esbjerg Declaration (2022) and the Ostend Declaration (2023).

SOURCE: 50Hertz