Ofgem has this morning announced that a joint venture comprising Mitsubishi and HICL Infrastructure has been selected to own and operate the Burbo Bank Extension transmission link.
Diamond Transmission Partners was chosen as the preferred bidder from a competitive procurement process under round four of the offshore transmission owner (OFTO) regime.
The offshore transmission link connects the 258MW Burbo Bank Extension wind farm, opened by DONG Energy earlier this year, to the national grid.
Ofgem noted that this specific round saw the lowest bids to date as a proportion of asset value, which the regulator said further demonstrated the value of competitive tenders in providing value for consumers.
As a result of the tender DTP is to own transmission assets with a value of around £180 million, and will receive contractual, availability-based revenues over the 20-year term.
In a statement to the market this morning HICL said it expected completion of the acquisition to close early next year and the consideration for the 50% share of the interest in the OFTO to be around £13 million.
Meanwhile HICL will continue to hold an interest in future OFTO tenders as it is partnered with Diamond Transmission in three further bids under tender round five.
