DTP wins preferred bidder status for Hornsea 2 transmission assets

Diamond Transmission Partners (DTP) has been selected as the preferred bidder to own and operate the offshore transmission link to the 1.3-GW Hornsea 2 wind farm off the east coast of England.

The selection was made by UK energy regulator Ofgem in a tender for an Offshore Transmission Owner (OFTO), the latter said on Friday. Its announcement was made just a few days after the huge offshore wind complex became fully operational.

For the next 24 years, DTP will own and operate the high-voltage link for Hornsea 2. The tie-up, consisting of Japanese Mitsubishi Corp (TYO:8058) and HICL Infrastructure plc, will pay for the assets once it gets the OFTO licence. The initial value of the transmission infrastructure is estimated at some GBP 1.19 billion (USD 1.37bn/EUR 1.38bn).

Ofgem noted that Transmission Capital Partners is the reserve bidder in the tender.

Located 89 kilometres (55.3 miles) from the Yorkshire shore, Hornsea 2 consists of 165 wind turbines that will be generating enough power to supply over 1.4 million UK homes. The plant is owned by Denmark’s Ørsted A/S (CPH:ORSTED), which earlier this year arranged the sale of a 50% stake in the project to a consortium comprising AXA IM Alts, a division of French insurer Axa SA (EPA:CS), and Credit Agricole Assurance, part of France’s Credit Agricole (EPA:ACA). The closing of that transaction is still pending regulatory clearance.

(GBP 1.0 = USD 1.149/EUR 1.159)

Choose your newsletter by Renewables Now. Join for free!