The offshore transmission asset connects the Ormonde Offshore Wind Farm to the national grid. This is the fourth Offshore Transmission Owner (OFTO) Licence awarded to INPP under the competitive tender process managed by energy regulator Ofgem, for the licensing of high voltage transmission links with offshore wind farms in Great Britain.
THE BACKGROUND
Offshore wind generation is a success story for the UK. Long-term government support has underpinned innovation and investment in the sector, helping to drive down costs while contributing to decarbonisation of the economy. The Government intends to build on the UK’s leading position with an aim to produce 40GW of offshore wind energy by 2030, up from c. 10GW in 2020. The UK has provided more support for offshore wind than any other country in the world and we anticipate that the technology will play a key role in helping the UK meet net zero by 2050.
To support this increase in offshore renewable energy generation, the Government identified that a new approach to developing transmission networks would be required and developed the offshore transmission regulatory regime. The Company recognised this opportunity and strategically positioned itself as one of the very few original consulting parties to Ofgem on the regime in 2009.
ABOUT ORMONDE OFTO
Ormonde offshore wind farm is located 10km off the Cumbrian Coast. The transmission assets comprise the onshore and offshore substations and 132kV capacity under-sea cables, 41km in length, connecting the offshore wind farm with the onshore grid network.
The OFTO licence is held by an INPP company, which has acquired the link from the wind farm owner, Ormonde Energy Limited. It follows the Robin Rigg OFTO, Gunfleet Sands OFTO, and Barrow OFTO Licences awarded in 2011.
Facts
Project capital cost
£115.1m
Energy transmission cable capacity
132kv
Homes powered by renewable energy
100,000
SDGs SUPPORTED
THE OUTCOME
Project highlights include:
- Operational and immediately yielding with no construction or refinancing risk
- 20-year availability-based revenue stream with protected downside whereby potential deductions will be capped at 10% of base revenue in any year
- Returns generated are fully linked to UK RPI and are not subject to any revenue or penalty exposure to windfarm performance or credit
- Revenues are contracted by a subsidiary of National Grid, NGESO, in their statutory ring-fenced role as the National Electricity Transmission Systems Operator and protected by the Energy Administration rules (Energy Act 2004)