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International Public Partnerships Limited (INPP) said in a press release that Ofgem has published a notice under Section 8A of the Electricity Act 1989 relating to the Lincolnshire offshore transmission (OFTO) project in the UK.
This is a key step towards reaching financial close on the investment that INPP expects to make in the project. This investment is now expected to be made in November 2014 and would be INPP's fifth OFTO project.
Transmission Capital Partners, the consortium comprising INPP, Amber Infrastructure and Drapers Gardens was appointed as preferred bidder for the long-term license and operation of the OFTO project on 10 May 2012.
Transmission Capital Partners expects to invest approximately £170 million (US$277.7 million) in the project which links the 270MW Lincolnshire wind farm to the UK National Grid via 100 km of subsea cables and other related infrastructure including substations.
INPP will take no exposure to electricity production or price risk, and will be paid via a pre-agreed, availability-based revenue stream over 20 years which is fully linked to UK inflation (RPI).