United Kingdom: EIB confirms GBP 82 million backing for Humber Gateway offshore transmission link
7 September 2016
The European Investment Bank (EIB) has agreed to provide GBP 82 million for the purchase, operation and maintenance of a new electricity transmission connection between the Humber Gateway offshore windfarm and the UK national electricity network.
The new Humber Gateway transmission link will connect the 73 turbine 220 MW Humber Gateway windfarm to the mainland transmission grid at Hedon, and includes an onshore substation in Hull, an offshore substation and 40km of mostly undersea cables.
“Investment to harness the UK’s offshore wind resources provides clean energy and is creating thousands of skilled jobs across the country. Offshore transmission connections are a key part of the UK’s future energy infrastructure and the European Investment Bank is pleased to support significant new investment to connect the Humber Gateway windfarm to the national network. This new scheme represents the tenth UK offshore transmission link supported by Europe’s long-term lending institution over the last five years,” said Jonathan Taylor, European Investment Bank Vice-President.
The European Investment Bank is the world’s largest international public bank, owned directly by the 28 European Union member states, and one of the world’s largest lenders for renewable energy-related investment. Over the last decade, the EIB has provided more than GBP 3.2 billion for investment in UK energy infrastructure. This has included support for investment in 10 different transmission connections to windfarms in UK waters in the North Sea and Irish Sea since 2011.
The 19 year long-term EIB loan will be provided to Humber Gateway OFTO Ltd and the consortium behind the transmission link project comprises Balfour Beatty and Equitix.
Earlier this year, the EIB agreed to provide GBP 77 million to support the transmission link to the Westermost Rough windfarm, located eight kilometres north east of Withernsea off the Holderness coast.
In the UK, separate Offshore Transmission Owners (OFTOs) take responsibility for offshore transmission assets under long-term OFTO licences. Since its launch in 2009, the OFTO regime has helped to attract significant investment and is managed under a regulatory framework overseen by energy market regulator Ofgem. Under the OFTO regime, investors are not directly exposed to construction risks as the transmission assets are only transferred after construction completion.
Other long-term investment in Yorkshire supported by the EIB includes the Green Port in Hull, investment by Yorkshire Water, the universities of Hull and York, schools in Barnsley, Bradford and Sheffield and upgrading hospitals in Wakefield and Pontefract.
Lending by the EIB in the UK last year totalled GBP 5.6 billion and represented the largest annual engagement since the start of EIB lending in the UK in 1973. EIB lending in the UK in 2015 supported nearly GBP 16 billion of overall investment in 40 projects across the country, which schools, university campuses, hospitals, upgraded energy links, renewable energy projects and water infrastructure.
The EIB and Unión de Créditos Inmobiliarios (UCI) are set to finance green investments in Iberia ranging from the refurbishment of existing buildings to the construction of Nearly Zero-Energy properties. These investments will be possible thanks to the provision of energy efficiency mortgages and consumer loans to the market by UCI.
The EIB has signed today its first loan to a company building and running photovoltaic plants in Poland. The EU bank will lend PLN 82m (around EUR 18m) to Energy Solar Projekty sp.z o.o. for the construction and operation of 66 small-scale, independent photovoltaic (PV) plants. With an average nominal capacity for each plant of less or equal than 1 MW, the total capacity will reach about 65,6 MW. This is the equivalent of 19,000 households, which could be supplied with the energy generated by the project.
The EIB has signed a EUR 25 million, 20-year tenor, loan agreement with the Põhja-Eesti Regionaalhaigla or North Estonian Medical Centre (NEMC). The financing will support the new construction of a psychiatric clinic, as well as a new building to consolidate the pathology, oncology and haematology departments of the hospital, responding to an urgent need for better inpatient and outpatient facilities. Next to the EIB loan the project is financed by the Nordic Investment Bank, European Structural Funds, and is expected to benefit from an upcoming loan from the Council of Europe Development Bank (CEB).