Reference: 20140200
Release date: 29 August 2014

Promoter – Financial Intermediary

OFFICE OF GAS AND ELECTRICITY MARKETS

Location

Description

Framework facility to support financing of two offshore wind farm transmission networks (Humber Gateway and Westermost Rough) being competitively tendered under the third tender round (Round 3) of the OFTO UK regulatory regime. This follows a previous framework approval covering six Tender Round 1 projects and four Tender Round 2 projects.

Objectives

The regulated entities (OFTOs) will operate and maintain offshore transmission assets essential to the export of electricity from offshore wind farms, the development of which supports EU and national targets for renewable energy and thus contributes to environmental and security of energy supply objectives. The financing of this project would contribute to the EIB's lending priority policy on renewable energy.

Comments

Sector(s)

  • Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

GBP 159 million (EUR 205 million)

Total cost (Approximate amount)

GBP 450 million (EUR 579 million)

Environmental aspects

Undersea cables, substations and wind farms fall by virtue of their technical characteristics under Annex II of the EIA-Directive. According to national regulations, an offshore wind farm and its associated transmission infrastructure is subject to a full mandatory EIA including public consultation. Further details of the environmental due diligence procedures applied to the project will be assessed during appraisal to verify compliance with the Bank's environmental policy.

Procurement

The regulatory authority Ofgem is running a competitive tender process to identify preferred bidders for future OFTOs. In this regard, and in accordance with its tender regulations, Ofgem published the Tender Commencement Notice on its website on 31 March 2014. In addition a voluntary notice was published in the Official Journal of the European Union (ref: 2014/S 067-115068). The procurement process will be reviewed during appraisal.

Status

Signed - 4/02/2016

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).

Related tags

United Kingdom Energy