The power grid link will transport power from the 630MW London Array offshore wind farm being developed in the Thames Estuary by Dong Energy, E.ON and Masdar.

Ofgem E-Serve has confirmed that the Blue Transmission consortium is in line to become its offshore transmission owners (OFTO), while a consortium of Balfour Beatty Capital and Equitix will be a reserve OFTO bidder.

Robert Hull, managing director of the commercial division of Ofgem E-Serve, told Business Green that the size of the deal represented a major milestone for the OFTO regime and the broader offshore wind industry.

"Competitive tendering for the ownership of offshore power links is attracting new investment into the [British] energy sector at a time of tough financial market conditions," Hull said.

"The competitive regime developed by the Department of Energy and Climate Change and Ofgem ensures the costs to consumers for the high voltage links are kept as low as possible."