November 8 (Renewables Now) - Transmission Capital Partners has reached financial close for the transmission link to the 402-MW Dudgeon offshore wind farm in the UK and has received a licence from UK energy regulator Ofgem.
Transmission Capital Partners is a consortium made up of International Public Partnerships Ltd (LON:INPP), Amber Infrastructure Group and Transmission Investment. It was selected by Ofgem to own and operate the GBP-297.9-million (USD 391.5m/EUR 342.2m) link to the Dudgeon wind farm, which is located off the coast of Cromer, Norfolk.
Announcing on Wednesday the granting of an Offshore Transmission Owner (OFTOs) licence to TC Dudgeon OFTO plc, the regulator said that Dudgeon is the first project from the fifth tender round of the OFTO regime to obtain a licence.
TC Dudgeon OFTO plc is buying the link and transmission assets from the owners of the wind farm -- Equinor ASA (OSE:EQNR), Masdar and China Resources (Holdings) Co Ltd.
The financial close was announced by INPP. The company said it will make a GBP-46-million investment for 100% of the equity and subordinated debt in TC Dudgeon OFTO plc. About 85% of the acquisition will be funded via a public bond issuance.
This is the seventh UK offshore transmission project in INPP's portfolio. The company has invested in OFTO assets that transmit about 1.5 GW of renewable power.
"With the commencement of the next round of Ofgem's competitive OFTO tenders, we look forward to maintaining the balance that our stake in UK electricity transmission brings to the Company's portfolio by continuing to generate durable, low-risk and inflation-linked returns for our investors," said International Public Partnerships chairman Rupert Dorey.
Under the recently launched sixth round of the OFTO regime, Ofgem is tendering the links to three wind farms -- 1.2-GW Hornsea 1, the 588-MW Beatrice and 714-MW East Anglia One.
(GBP 1 = USD 1.314/EUR 1.149)