Release date: 13 October 2009
Promoter – Financial Intermediary
Ofgem - Office of the Gas and Electricity Markets (GB regulatory authority)Location
Description
The operation would concern several, separated transmission connection projects for offshore wind farms located in UK waters. Ofgem has developed a new regulatory regime for offshore transmission systems, whereby the authority will licence new Offshore Transmission Owners (OFTOs) - to own and maintain these assets over a 20 year period.
Objectives
The regulatory entities will operate and maintain offshore transmission assets essential to the export of electricity from offshore windfarms, the development of which supports EU and national targets for renewable energy.
Comments
In line with the Bank’s eligibility guidelines, only those networks not yet constructed will be considered for EIB funding. On this basis, these are expected to be Sheringham Shoal, Ormonde, Greater Gabbard, Thanet, Walney 1 and Walney 2
Sector(s)
Proposed EIB finance (Approximate amount)
Up to 50% of total eligible project cost associated with each individual OFTO.
Total cost (Approximate amount)
To be determined during appraisal
Environmental aspects
An offshore wind farm including its associated equipment such as the transmission system falls by virtue of its technical characteristics under Annex II of EIA-Directive 85/337/EEC (as amended). According to national regulations an offshore wind farm is subject to a full mandatory EIA including public consultation. Further details of the environmental due diligence procedures applied for each of the transmission assets considered eligible for being financed by the Bank, will be assessed by the Bank during appraisal to verify compliance with the Bank’s environmental policy.
Procurement
The regulatory authority Ofgem runs a competitive tender process following publication of a contract notice in EUOJ to identify preferred bidders for future OFTOs. A long list of pre-qualified bidders was announced. The tender process allows for interested parties to bid for multiple projects, and tenders will be conducted separately for each qualifying windfarm development.
Status
Signed - 21/10/2011
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).