HICL Infrastructure Company (HICL) has announced that Diamond Transmission Partners, a consortium comprising HICL, Diamond Transmission Corporation Limited (a subsidiary of Mitsubishi Corporation) and Chubu Electric Power Co., Inc. has been selected by Ofgem as the preferred bidder to own and operate the Walney Extension Offshore Wind Farm offshore transmission link.
The Walney OFTO
The offshore transmission owner (“OFTO”) regime covers regulated assets where the OFTO takes ownership of an operational transmission asset and receives contractual, availability-based revenues over a 20-year period. The OFTO does not have exposure to construction risk, electricity production or power price risk. The Walney OFTO represents the fourth successful bid by the partnership of HICL and Diamond Transmission Corporation Limited, 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 2018 and November 2018 respectively.
The consideration for HICL’s 40% share of the economic interest in the Walney OFTO is expected to be approximately £23mn, with completion of the acquisition anticipated by the end of 2019.
About HICL Infrastructure Company
HICL Infrastructure Company Limited is a long-term investor in infrastructure assets. Most of the company’s investments are operational and are predominantly in the UK, though it does have assets in Australia, Europe and North America.
HICL’s current portfolio includes 117 infrastructure investments, which it is aiming to grow by targeting opportunities at the lower end of the risk spectrum, in three target market segements: PPP projects; regulated assets; and demand-based assets.