HICL completes acquisition of Race Bank transmission assets

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Infrastructure investment company HICL Infrastructure announced the completion of the acquisition of the transmission assets associated with the Race Bank Windfarm off the coast of Norfolk, by Diamond Transmission Partners on Friday.

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The London-listed firm said Diamond Transmission Partners was a consortium comprising HICL and Diamond Transmission Corporation - a subsidiary of Mitsubishi Corporation.

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

HICL had previously announced its status as preferred bidder for the OFTO, alongside Diamond Transmission Corporation, in June last year.

The group's investment was £24m, funded from drawings under HICL's revolving credit facility.

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

“The Race Bank OFTO facilitates the transmission of renewable energy to over 500,000 UK homes, contributing to the UK's transition to a low-carbon economy.”

Under the OFTO regime, Diamond Transmission Partners was taking ownership of the operational transmission asset and would receive contractual, availability-based revenues over a 20-year period.

Diamond Transmission Partners did not have exposure to construction risk, electricity production or power price risk.

Renewable Energy Systems would provide certain operations and maintenance services for Diamond Transmission Partners under a long-term subcontract, HICL added.