INPP wins fifth UK offshore project

The London-listed investment firm, which earlier this week announced a £180m fundraising plan, leads the Transmission Capital Partners consortium which has been awarded preferred bidder status for the 270-megawatt Lincs Offshore Wind Farm project.

Transmission Capital Partners (TCP) – a consortium comprising London-listed International Public Partnerships Limited (INPP), INPP’s investment adviser Amber Infrastructure, and project company Drapers Gardens – has been appointed preferred bidder for the long-term licence and operation of the Lincs Offshore Wind Farm.

The project is the first to stem from a second round of UK offshore transmission tenders being awarded by electricity and gas regulator Ofgem. Having won four in the first round, this latest award is the fifth such project in which TCP  has gained preferred bidder status.

The project involves the transmission cable connection to the Lincs Offshore Wind Farm, which is located approximately eight kilometres off the Lincolnshire coast near Skegness and comprises 75 turbines with a total installed capacity of 270 megawatts (MW).

The five projects won by TCP have an aggregate investment cost of around £525 million (€653 million; $846 million), with Lincs alone accounting for approximately £282 million. The projects comprise onshore/offshore sub-stations and under-sea cables connecting the mainland electricity grid network to the offshore wind farms. The revenue term for each project is a minimum of 20 years fully indexed to the UK Retail Price Index (RPI).

TCP is on the shortlists for a further two offshore transmission projects in the second tender round, London Array Phase 1 and Gwynt y Mor. These two are expected to be awarded by Ofgem later this year.

Beyond this, further concessions are expected to be developed as the offshore generation industry expands, with a total development value of up to £14 billion expected over the next eight years.

Earlier this week, INPP announced it was launching a placing, open offer and offer for subscription of new ordinary shares by the end of June, with the aim of raising £180 million.