International PPL notes Ofgem notice on East Anglia One project

2nd Nov 2022 08:38

(Sharecast News) - Infrastructure investor International Public Partnerships said on Wednesday that Ofgem, as expected, had published a notice under the Electricity Act on the East Anglia One offshore transmission project (OFTO).

The FTSE 250 company described its as a "key step" towards reaching financial close on the investment that it expected to make in the project.

It said it was expecting to invest £105m into the project on financial close, anticipated to be in December.

"The project will be the company's 10th OFTO investment, and relates to the transmission cable connection to the offshore wind farm located 50 kilometres off the coast of Suffolk," the board said in its statement.

"The wind farm consists of 102 7MW wind turbine generators with an installed capacity of 714MW, connected to the offshore substation platforms located within the boundaries of the East Anglia One wind farm."

International PPL said the investment would further increase the company's contribution to the UK's transition to a net zero carbon economy.

"The East Anglia One OFTO has the capacity to transmit enough renewable electricity to power the equivalent of over 600,000 homes, increasing the total equivalent across the company's OFTO portfolio to 2.7 million homes.

"The company takes no exposure to electricity production or price risk but is paid a pre-agreed, availability-based revenue stream over 21.5 years which is linked to UK inflation, as measured by the retail price index."

As it had previously announced, the company was also the preferred bidder on the Moray East OFTO.

At 1045 GMT, shares in International Public Partnerships were up 0.21% at 152.93p.

Reporting by Josh White for Sharecast.com.