The offshore transmission assets connects the offshore wind farm at Barrow-in-Furness to the national grid and is a key component in supporting the UK transition towards a low carbon economy.
Offshore wind generation is a success story for the UK. Long-term government support has underpinned innovation and investment in the sector, helping to drive down costs while contributing to decarbonisation of the economy. The UK now has the largest installed offshore wind capacity in the world, with 9.8 gigawatts (‘GW’) installed which will rise to 19.5 GW by mid 2020s. The UK has provided more support for offshore wind than any other country in the world and we anticipate that the technology will play a key role in helping the UK meet net zero by 2050.
To support this increase in offshore renewable energy generation, the Government identified that a new approach to developing transmission networks would be required and developed the offshore transmission regulatory regime. The Company recognised this opportunity and strategically positioned itself as one of the very few original consulting parties to Ofgem on the regime in 2009.
about Barrow OFTO
The third Offshore Transmission Owner (OFTO) Licence awarded to INPP by energy regulator Ofgem for licensing high voltage transmission links to Great Britain's offshore wind farms.
Barrow OFTO provides the electrical connection for the Barrow offshore wind farm, a 90MW facility located 7km south-west of Walney Island, near Barrow-in-Furness. The transmission assets comprise the onshore and offshore substations and under-sea cables connecting the offshore wind farm with the onshore grid network.
The OFTO Licence is held by an INPP company, which acquired the link from wind farm owner Barrow Offshore Wind.
Project capital cost
Energy generation capacity supported
Highlights of the project include:
- Operational and immediately yielding with no construction or refinancing risk
- 18.5-year availability-based revenue stream with protected downside whereby potential deductions will be capped at 10% of base revenue in any year
- Returns generated are fully linked to UK RPI and are not subject to any revenue or penalty exposure to windfarm performance or credit
- Revenues are contracted by a subsidiary of National Grid, the National Grid Electricity Transmission plc (NGET) in their statutory ring-fenced role as national electricity systems operator (NGET rated ‘A-’ S&P; ‘A’ Fitch)