HICL consortium selected to operate Watney offshore transmission link

HICL Infrastructure Company announced on Thursday that Diamond Transmission Partners - a consortium comprising the firm - as well as Mitsubishi subsidiary Diamond Transmission Corporation and Chubu Electric Power have been selected by Ofgem as the preferred bidder to own and operate the Walney Extension Offshore Wind Farm offshore transmission link.

The FTSE 250 company explained that the offshore transmission owner regime covered regulated assets where the offshore transmission owner took ownership of an operational transmission asset, and received contractual, availability-based revenues over a 20-year period.

It said the offshore transmission owner did not have exposure to construction risk, electricity production or power price risk.

“The Walney offshore transmission owner represents the fourth successful bid by the partnership of HICL and Diamond Transmission Corporation, the others being the Burbo Bank Extension OFTO which has reached financial close, and the Race Bank OFTO and the Galloper OFTO where Diamond Transmission Partners have previously been selected as preferred bidder, in June and November 2018 respectively,” the HICL board said in his statement.

“The consideration for HICL's 40% share of the economic interest in the Walney OFTO is expected to be approximately £23m.”

HICL said completion of the acquisition was expected towards the end of the calendar year.