Transmission consortium poised for sixth OFTO deal

The group, which includes INPP and Amber Infrastructure, is preferred bidder for the cable connection to the UK’s Westernmost Rough offshore wind farm.

Transmission Capital Partners – a consortium comprising London-listed infrastructure investment firm INPP, its fund manager Amber Infrastructure and transmission business Transmission Investment – has been named preferred bidder for the UK’s Westernmost Rough offshore wind farm project.

The deal involves the long-term licence and operation of a transmission cable to the wind farm, which is located off the Yorkshire coast near Hull in north-east England and comprises 35 turbines, each with a capacity of 6 megawatts. The wind farm is a joint venture between DONG Energy (50 percent), Marubeni Corporation (25 percent) and the UK Green Investment Bank (25 percent).

The deal is the sixth OFTO (offshore transmission operator) deal to be awarded to Transmission Capital Partners. A statement from INPP said it expected the consortium to invest around £30 million (€42 million; $47 million) upon financial close of the project, which is expected in the final quarter of this year.

The agreement involves no exposure to electricity production or price risk, with payment based on a pre-agreed, availability-based revenue stream over 20 years which is fully linked to UK inflation (RPI).

The Transmission consortium is on a shortlist for what could its seventh project win, with the Humber Gateway project expected to be awarded by regulator Ofgem later this year.