27th Nov 2013 09:07
LONDON (Alliance News) - Balfour Beatty PLC Wednesday said it had reach a financial close for the GBP317 million Greater Gabbard offshore transmission project
The infrastructure group's investment arm is part of a consortium consisting of Equitix and AMP Capital, each holding a one-third share in the high-voltage transmission system which connects the 504MW Greater Gabbard wind farm located off the coast of Suffolk to the onshore transmission grid.
Under the deal, Balfour Beatty will invest one-third of the required equity of GBP46 million in the link to the wind farm, which will generate enough electricity to power around 500,000 homes each year.
This is Balfour's first offshore transmission investment as part of Ofgem's offshore transmission owner (OFTO) tender regime. Ofgem is the energy regulator in the UK. Balfour Beatty has been awarded preferred bidder status on three OFTO projects by Ofgem, including the Greater Gabbard project and projects in Thanet and Gwynt y Mor.
The Greater Gabbard OFTO assets include two offshore and one onshore substation and over 150km of sub-sea cable infrastructure.
Balfour Beatty will jointly own the OFTO assets and be responsible for their operation and maintenance under a long-term licence granted by Ofgem with a 20-year revenue entitlement.
The stock was trading at 267.39 pence Wednesday morning, up 2.09 pence or 0.8%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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