New contract blows in at Intl Public Partnership

A consortium consisting of quoted infrastructure investment company International Public Partnerships plus Amber Infrastructure and Drapers Gardens has been appointed by Ofgem as the preferred bidder for the long-term licence and operation of a further offshore transmission project.

By MoneyWeek

published 10 May 2012

in Features

This is the fifth such project for which the consortium, known as Transmission Capital Partners (TCP), has been appointed as the preferred bidder.

The scheme comprises the transmission cable connection to Lincolnshire Offshore Wind Farm, and is the first project in the second round of tenders to be awarded by Ofgem, the regular for the UK electricity and gas markets.

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The five projects now awarded to TCP have an aggregate total investment cost of around £525m, including about £282m for the most recent project, and comprise onshore/offshore sub-stations and under-sea cables connecting the mainland electricity grid network to the offshore wind farms. The revenue term for each project is a minimum 20 years.

The consortium is short-listed for a further two offshore transmission projects, which Ofgem is expected to award later this year.

"Further concessions are expected to be developed as the offshore generation industry expands with a total development value of up to £14bn expected over the next eight years," International PP said.