£1.2bn deal is agreed for transmission assets of world-leading wind farm
DIAMOND TRANSMISSION PARTNERS BUYS IN ONCE AGAIN TO PARTNER WITH ØRSTED ON ONSHORE AND OFFSHORE GREEN ENERGY INFRASTRUCTURE
A £1.2 billion deal has been agreed for the transmission assets of the world’s largest offshore wind farm.
The sale of the vital infrastructure linking Hornsea One to the National Grid on the South Humber Bank has been agreed between the joint venture of developer Orsted and investor Global Infrastructure Partners and Diamond Transmission Partners.
It includes the onshore substation at North Killingholme, export cables, the offshore reactive compensation substation located partway between shore and the farm, and three offshore substations strategically located amid the 174 turbines. DTP is a partnership between Diamond Transmission Corporation Ltd, a wholly-owned subsidiary of Mitsubishi Corporation, and Chubu Electric Power Co Inc. Sale of this element is in accordance with the offshore transmission owner ‘OFTO’ regime, which enforces third party ownership. Following a competitive tender, in February 2020, DTP was selected by Ofgem as preferred bidder. Ørsted, from its East Coast Hub base in Grimsby, will provide DTP with operations and maintenance services for the transmission assets under a long-term agreement, as it does with the actual wind farm, which has been retained by the joint venture.
DTP is already looking after assets at Orsted’s Race Bank off the Lincolnshire coast, as well as Walney Extension off the North West coast - the wind farm from which Hornsea One took the ‘world’s largest’ title from when it was commissioned early last year. Galloper, off the North Norfolk coast and Burbo Bank, also in the North West, will complete the portfolio.
It pulls in project-specific investors to facilitate the deals.