June 21 (Renewables Now) - Mitsubishi Corp (TYO:8058) and HICL Infrastructure Co Ltd (LON:HICL) expect to take on the ownership and operation of the link to the 573-MW Race Bank offshore wind farm in the UK in early 2019.
Yesterday, UK energy watchdog Ofgem said it has selected Diamond Transmission Partners as preferred bidder for the Race Bank high voltage transmission link. The consortium between Mitsubishi subsidiary Diamond Transmission Corporation (DTC) and HICL will own and operate the assets, which include subsea cable, land cable, and offshore and onshore substations, and get revenues under a 20-year contract yet to be concluded.
The consortium that developed the offshore wind project calculates that the value of the transmission assets stands at around GBP 530.4 million (USD 698.1m/EUR 604m). Mitsubishi estimates the value at GBP 500.9 million. Ofgem has launched a cost assessment process and it said the final transfer value will be published as part of the Offshore Transmission Owner (OFTO) licence grant process.
Completion of the acquisition of the assets is expected in early 2019, according to a press released by HICL, while Mitsubishi says the 20-year term to begin around March 2019.
The offshore wind farm is powered by 91 Siemens Gamesa 6-MW turbines off the coast of Norfolk. The transmission link connects it to the Walpole substation, owned by National Grid. Ørsted A/S (CPH:ORSTED) has a 50% stake in the Race Bank wind farm and the Macquarie European Infrastructure Fund 5 holds 25%.
The Race Bank OFTO is the second successful joint bid by HICL and Diamond Transmission Corp. The first was the Burbo Bank Extension OFTO, which recently reached financial close.
(GBP 1 = USD 1.32/EUR 1.14)