EIB provides GBP-52m funding for UK offshore wind transmission link deal
Oct 27, 2011 - The European Investment Bank (EIB) on Tuesday announced GBP 52 million (USD/EUR) in debt funding to Blue Transmission Walney 1 Ltd for the acquisition of a transmission link to the Walney 1 offshore wind farm in the UK.
Blue Transmission Walney 1 Ltd, a consortium of Australian investment bank Macquarie (ASX:MQG) and Barclays Integrated Infrastructure Fund, part of British banking group Barclays (LON:BARC), is buying the link to the 183.6 MW offshore wind farm from its owners, Danish state-owned utility Dong Energy, UK utility Scottish and Southern Energy (LON:SSE) and OPW, a consortium of Dutch pension fund PGGM and Ampere Equity Fund, for GBP 105.4 million.
Blue Transmission consortium has won a licence to own and operate the transmission link for 20 years in a tender under the Offshore Transmission Owner regime by the UK energy regulator Ofgem. The buy is part of the licence grant process.
The EIB intends to provide GBP 300 million in total funding for six of the nine links to offshore farms from the UK's first transitional tender round, aiming to promote investment in UK offshore links.