The SSE Renewables business of UK utility SSE plc (LON:SSE) on Friday announced a sale agreement for the offshore transmission assets (OFTO) of the 588-MW Beatrice wind farm in Scottish waters in line with UK energy regulator Ofgem’s OFTO regime.
Beatrice Offshore Wind Farm Ltd sells the assets to Transmission Capital Partners, a consortium consisting of International Public Partnerships Ltd (LON:INPP), Amber Infrastructure Group and Transmission Investment which in December 2019 was selected by Ofgem as the preferred bidder for the transmission licence for the wind farm.
SSE Renewables owns 40% in Beatrice Offshore Wind Farm Ltd, with other shareholders including Red Rock Power Ltd, The Renewables Infrastructure Group and Equitix.
On Thursday, INPP said the Transmission Capital Partners consortium has reached financial close for the long-term ownership and operation of the Beatrice link, which will provide a 23-year availability-based revenue stream.
The company said it will invest around GBP 50 million (USD 69.8m/EUR 58.7m) for 100% of the equity and subordinated debt in TC Beatrice OFTO Ltd. A number of banks and institutional investors will provide project-level senior debt.
The transmission assets hold an asset value of GBP 437.9 million. They cover two offshore transformer modules, the onshore substation and export cables.
The wind farm, located 13.5 km (8.4 miles) off the Caithness coast, became fully operational in June 2019.
Separately, SSE today announced a deal to sell its 33.3% stake in gas distribution operator Scotia Gas Networks Ltd (SGN) for about GBP 1.2 billion in cash, completing a disposal programme that has generated GBP 2.7 billion in proceeds from non-core assets.
"We see significant growth opportunities in our core networks and renewables businesses in the transition to net zero and the capital we are releasing through our disposals programme will help enable us to maximise the delivery of our low-carbon electricity orientated strategy and ultimately create sustainable long-term value for customers, shareholders and society,” said SSE finance director Gregor Alexander.
(GBP 1 = USD 1.397/EUR 1.175)
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