HICL consortium acquires Galloper Windfarm transmission assets

HICL Infrastructure announced the acquisition of transmission assets associated with the Galloper Windfarm off the coast of Suffolk on Wednesday.

The FTSE 250 company said the assets were acquired by Diamond Transmission Partners (DTP) - a consortium comprising itself and Mitsubishi subsidiary Diamond Transmission Corporation.

It explained that the transaction was part of Tender Round 5 of Ofgem's Offshore Transmission Owner (OFTO) programme.

HICL had previously confirmed its status as preferred bidder for the OFTO, alongside Diamond Transmission Corporation, in November 2018.

Its investment was £13.6m, funded from the company's cash resources.

“This acquisition fits well with the company's strategy of investing in essential and public core infrastructure, with a strong social purpose,” HICL’s board said in its statement.

“The Galloper OFTO facilitates the transmission of enough renewable energy to power over 380,000 UK homes, contributing to the UK's transition to a low-carbon economy.”

Under the OFTO regime, DTP would take ownership of the operational transmission asset and receive contractual, availability-based revenues over a 20-year period.

DTP did not have exposure to construction risk, electricity production or power price risk.

Renewable Energy Systems (RES) would provide certain operations and maintenance services for DTP under a long-term subcontract.

At 0831 GMT, shares in HICL Infrastructure were down 0.68% at 175.2p.