INPP wins Ofgem approval to run Yorkshire's Westermost Rough windfarm

4th Feb 2016 15:48

(ShareCast News) - Energy regulator Ofgem has given the green light to International Public Partnerships (INPP) and its consortium to operate the 210 megawatt Westermost Rough wind-farm eight kilometres off the coast of Yorkshire.FTSE 250-listed INPP along with consortium partners Amber Infrastructure and Transmission Investment have won the licence to own and operate the £156.7m high voltage link from the windfarm.INPP, which in November raised £180m raised through a placing and open offer, will make a £27m investment for 100% of the equity and subordinated debt of the OFTO.The £155m senior debt for the project has been jointly agreed with the European Investment Bank and Aviva.Following the investment INPP will have circa £24m of cash available for investment. The OFTO will connect a windfarm containing 356MW turbines located 8km off the coast of Yorkshire to the onshore grid network, providing enough electricity to power around 150,000 UK homes.Rupert Dorey, INPP chairman, said: "Westermost Rough is the sixth OFTO in which INPP has invested, cementing the Company and its consortium's leading role in the offshore electricity transmission sector. It is a testament to our ability to source attractive investment opportunities such as these that reflects our favourable position in the UK infrastructure market. Where appropriate, we look forward to enhancing our portfolio's stake in UK electricity transmission, generating durable, low-risk and inflation-linked returns for our investors."The Westermost Rough transmission assets were tendered under round three of the OFTO scheme. Since the scheme was launched in 2009, it has delivered £2.7 bn investment. Tendering reduces the costs of connecting offshore wind farms and the regime has already saved consumers between £200m and £400m as a result of Tender Round One. Ofgem expects to complete the licence grant for the Humber Gateway OFTO (the remaining project in tender round three) this summer. Ofgem also expects to launch tender rounds four and five later this year.