The Greater Gabbard Offshore Transmission Owner (OFTO) project is the high voltage transmission system connecting the 504MW Greater Gabbard Wind Farm, off the coast of Suffolk, to the onshore transmission grid.
The Greater Gabbard Wind Farm will generate enough clean electricity for 530,000 homes each year.
The OFTO assets comprise three substations and more than 150 kilometres of sub-marine cable infrastructure.
The project is part of UK energy regulator Ofgem’s OFTO tender regime and is AMP Capital’s first offshore transmission investment.
Each organisation within the consortium holds a one-third share of the project.
The licence granted by Ofgem enables all three organisations to jointly own and operate the OFTO assets and includes a 20-year revenue entitlement.
AMP Capital head of infrastructure for Europe and the Americas Boe Pahari said renewable energy is an important sector for AMP Capital due to its growth potential.
“This project is in line with our investment strategy, which includes holding core, high-quality assets within our infrastructure business in order to ensure sustainable and long-term value for our investors,” said Mr Pahari.
“It follows our agreement to acquire a significant stake in Powerco, New Zealand’s second largest electricity and gas distributor,” she said.
According to AMP Capital, Greater Gabbard is the first OFTO project to raise debt financing from public bond markets.
It is also the first UK project to use a European investment bank project bond credit enhancement product, enabling it to attract private finance from institutional investors.
This reduces investment risk, lowering the cost of finance and therefore the cost for consumers.
