Policy background Part 7: Market Reform and Consumer Protection Multi-purpose Interconnectors
Multi-purpose interconnectors (MPIs) are a form of Offshore Hybrid Assets which combine electricity interconnection between Great Britain and other jurisdictions with direct connections to offshore generation in Great Britain waters, such as wind energy. The Act will create a new licensable activity for MPIs. Operating an MPI without a licence will be prohibited and Ofgem will be empowered to grant licences.
	As set out in ‘Powering Up Britain: Energy Security Plan’ in April 2023, Government committed to "work with Ofgem, developers and the UK’s European partners to realise at least 18 gigawatts of interconnector capacity by 2030", over double the current capacity of 8.4 gigawatts and to deliver the first MPI for the UK. The Government has also set targets to achieve 50 gigawatts of offshore wind generation by 2030, and net zero by 2050.
	Increasing the level of interconnection to 18 gigawatts has been shown to facilitate trade with other markets, reduce consumer bills, enhance the flexibility of the energy system, and support increased levels of intermittent renewable energy such as offshore wind. The UK Government supports interconnection as a core part of its energy strategy, due to its benefits in helping to provide an electricity supply that progresses towards the Government’s net zero decarbonisation goal in a low cost and secure way.
	In comparison to separate interconnectors and point-to-point offshore wind connections, MPIs offer increased benefits in terms of reduced capital expenditure, reduced wind curtailment, and fewer coastal landing points.