Ofgem picks preferred bidder for link to Galloper offshore wind farm

UK energy regulator Ofgem has selected Diamond Transmission Partners (DTP) as the preferred bidder to own and operate the offshore transmission link to the 353-MW Galloper offshore wind farm off the Suffolk coast.

The UK energy watchdog selected DTP in a tender process in which bidders compete to become Offshore Transmission Owners (OFTOs). The winner, which is a consortium comprising Mitsubishi Corp (TYO:8058) and HICL Infrastructure Co Ltd (LON:HICL), will be awarded a 20-year contract.

The reserve bidder is Mari Energy Transmission, Ofgem said on Thursday.

The Galloper wind farm was brought online in March and officially inaugurated at the end of September. Its 56 turbines by Siemens Gamesa Renewable Energy SA (BME:SGRE) will have a combined output that is expected to be enough to meet the power demand of over 380,000 households annually.

The project is a partnership between German energy group Innogy SE (ETR:IGY), which led the development and construction of the wind park, Siemens Financial Services, Sumitomo Corp (TYO:8053), ESB and a consortium managed by Green Investment Group (GIG) and Macquarie Infrastructure and Real Assets. Innogy holds a 25% interest and will operate the plant on behalf of the project partners.

The consortium, which developed both the offshore wind project and link infrastructure, calculates that the value of the transmission assets stands at GBP 329.1 million (USD 423.7m/EUR 371.5m).

The Galloper project is part of Ofgem's fifth tender round for offshore transmission links. The other links in it are the 402-MW Dudgeon, 573-MW Race Bank, 660-MW Walney Extension and 400-MW Rampion. The invitation to tender stage is currently ongoing for the Walney Extension and will soon start for the Rampion project, as well.

(GBP 1.0 = USD 1.288/EUR 1.129)

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