Appointment of preferred bidder for first 3 OFTO projects

OFTOTransmission Investment

Ofgem has announced today that Transmission Capital Partners have been appointed as preferred bidder for three of the OFTO projects in the first transitional tender round.

Transmission Capital Ltd is pleased to announce that Transmission Capital Partners, the Transmission Capital / Amber Infrastructure / International Public Partnerships consortium has been appointed as preferred bidder for three out of the seven projects awarded under Ofgem’s first round of tenders for the long-term licence and operation of offshore transmission assets. The projects relate to the transmission cable connections to the recently constructed offshore wind farms at Barrow, Gunfleet Sands and Robin Rigg. Together these projects have a generation capacity of approximately 430 MW of energy. All three projects are already operational.

The assets comprise onshore/offshore substations and under-sea cables connecting the mainland electricity grid network to the offshore wind-farms. The concession term is for 20 years and is fully indexed to UK RPI.

The total capital value for the three projects is approximately £142 million. Further financial information will be available following financial close. In addition, the consortium remains shortlisted for two further projects, expected to be awarded by the end of 2010 or early 2011.

These awards are made as part of the first offshore transmission tender round with subsequent awards expected as the offshore generation industry expands. New opportunities with a total development value of up to £14bn are expected over the next nine years.