Offshore Transmission: A secure investment for troubled times

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Adam Barber
December 14, 2011
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This content is from our archive. Some formatting or links may be broken.
Offshore Transmission: A secure investment for troubled times

A long term, secure and green investment represents an attractive opportunity for investors in the current turbulent financial climate. A wide range of investors including pension funds, private equity, infrastructure funds and major corporates are bidding to invest in the transmission links which carry electricity from offshore wind farms to the shore.

Charles Yates, Energy, Environment and Sustainability Director at Grant Thornton

Charles Yates



The investors are bidding to buy existing assets with a regulated licence issued by the independent electricity regulator (Ofgem) to be an offshore transmission operator (OFTO) transmitting electricity to the onshore grid. These are attractive assets for long term investors, as they are secure even in the current troubled times for the following reasons:

• A robust 20 year revenue stream with limited risk of regulatory intervention

• The OFTO is protected from wind farm operating risk (the OFTO is paid as long as the transmission assets are operational, independently of whether the wind farm is generating electricity)

• There is no construction risk as operational assets are currently being tendered

• The OFTO is appointed following a transparent competitive process run by Ofgem

• There is a significant, sustained pipeline of OFTO investment opportunities worth £15-20bn extending over several years – thus bidders can gear up for a number of opportunities

• There is strong political and regulatory support for UK offshore wind – DECC estimate there will be 10 - 26 GW of offshore wind by 2020 which constitutes the mainstay of additional renewable generation to be built by 2020

Long term investors may wish to assess the next round of tenders which start in 2012 for OFTOs for the Humber Gateway, Race Bank and West of Duddon Sands wind farms with combined generating capacity of 1.3 GW and a total estimated value of circa £1bn.

By Charles Yates, Energy, Environment and Sustainability Director at Grant Thornton


Charles leads the Grant Thornton team which is advising Ofgem on the £2bn OFTO Transitional Round 2

A long term, secure and green investment represents an attractive opportunity for investors in the current turbulent financial climate. A wide range of investors including pension funds, private equity, infrastructure funds and major corporates are bidding to invest in the transmission links which carry electricity from offshore wind farms to the shore.

Charles Yates, Energy, Environment and Sustainability Director at Grant Thornton

Charles Yates



The investors are bidding to buy existing assets with a regulated licence issued by the independent electricity regulator (Ofgem) to be an offshore transmission operator (OFTO) transmitting electricity to the onshore grid. These are attractive assets for long term investors, as they are secure even in the current troubled times for the following reasons:

• A robust 20 year revenue stream with limited risk of regulatory intervention

• The OFTO is protected from wind farm operating risk (the OFTO is paid as long as the transmission assets are operational, independently of whether the wind farm is generating electricity)

• There is no construction risk as operational assets are currently being tendered

• The OFTO is appointed following a transparent competitive process run by Ofgem

• There is a significant, sustained pipeline of OFTO investment opportunities worth £15-20bn extending over several years – thus bidders can gear up for a number of opportunities

• There is strong political and regulatory support for UK offshore wind – DECC estimate there will be 10 - 26 GW of offshore wind by 2020 which constitutes the mainstay of additional renewable generation to be built by 2020

Long term investors may wish to assess the next round of tenders which start in 2012 for OFTOs for the Humber Gateway, Race Bank and West of Duddon Sands wind farms with combined generating capacity of 1.3 GW and a total estimated value of circa £1bn.

By Charles Yates, Energy, Environment and Sustainability Director at Grant Thornton


Charles leads the Grant Thornton team which is advising Ofgem on the £2bn OFTO Transitional Round 2

A long term, secure and green investment represents an attractive opportunity for investors in the current turbulent financial climate. A wide range of investors including pension funds, private equity, infrastructure funds and major corporates are bidding to invest in the transmission links which carry electricity from offshore wind farms to the shore.

Charles Yates, Energy, Environment and Sustainability Director at Grant Thornton

Charles Yates



The investors are bidding to buy existing assets with a regulated licence issued by the independent electricity regulator (Ofgem) to be an offshore transmission operator (OFTO) transmitting electricity to the onshore grid. These are attractive assets for long term investors, as they are secure even in the current troubled times for the following reasons:

• A robust 20 year revenue stream with limited risk of regulatory intervention

• The OFTO is protected from wind farm operating risk (the OFTO is paid as long as the transmission assets are operational, independently of whether the wind farm is generating electricity)

• There is no construction risk as operational assets are currently being tendered

• The OFTO is appointed following a transparent competitive process run by Ofgem

• There is a significant, sustained pipeline of OFTO investment opportunities worth £15-20bn extending over several years – thus bidders can gear up for a number of opportunities

• There is strong political and regulatory support for UK offshore wind – DECC estimate there will be 10 - 26 GW of offshore wind by 2020 which constitutes the mainstay of additional renewable generation to be built by 2020

Long term investors may wish to assess the next round of tenders which start in 2012 for OFTOs for the Humber Gateway, Race Bank and West of Duddon Sands wind farms with combined generating capacity of 1.3 GW and a total estimated value of circa £1bn.

By Charles Yates, Energy, Environment and Sustainability Director at Grant Thornton


Charles leads the Grant Thornton team which is advising Ofgem on the £2bn OFTO Transitional Round 2

A long term, secure and green investment represents an attractive opportunity for investors in the current turbulent financial climate. A wide range of investors including pension funds, private equity, infrastructure funds and major corporates are bidding to invest in the transmission links which carry electricity from offshore wind farms to the shore.

Charles Yates, Energy, Environment and Sustainability Director at Grant Thornton

Charles Yates



The investors are bidding to buy existing assets with a regulated licence issued by the independent electricity regulator (Ofgem) to be an offshore transmission operator (OFTO) transmitting electricity to the onshore grid. These are attractive assets for long term investors, as they are secure even in the current troubled times for the following reasons:

• A robust 20 year revenue stream with limited risk of regulatory intervention

• The OFTO is protected from wind farm operating risk (the OFTO is paid as long as the transmission assets are operational, independently of whether the wind farm is generating electricity)

• There is no construction risk as operational assets are currently being tendered

• The OFTO is appointed following a transparent competitive process run by Ofgem

• There is a significant, sustained pipeline of OFTO investment opportunities worth £15-20bn extending over several years – thus bidders can gear up for a number of opportunities

• There is strong political and regulatory support for UK offshore wind – DECC estimate there will be 10 - 26 GW of offshore wind by 2020 which constitutes the mainstay of additional renewable generation to be built by 2020

Long term investors may wish to assess the next round of tenders which start in 2012 for OFTOs for the Humber Gateway, Race Bank and West of Duddon Sands wind farms with combined generating capacity of 1.3 GW and a total estimated value of circa £1bn.

By Charles Yates, Energy, Environment and Sustainability Director at Grant Thornton


Charles leads the Grant Thornton team which is advising Ofgem on the £2bn OFTO Transitional Round 2

A long term, secure and green investment represents an attractive opportunity for investors in the current turbulent financial climate. A wide range of investors including pension funds, private equity, infrastructure funds and major corporates are bidding to invest in the transmission links which carry electricity from offshore wind farms to the shore.

Charles Yates, Energy, Environment and Sustainability Director at Grant Thornton

Charles Yates



The investors are bidding to buy existing assets with a regulated licence issued by the independent electricity regulator (Ofgem) to be an offshore transmission operator (OFTO) transmitting electricity to the onshore grid. These are attractive assets for long term investors, as they are secure even in the current troubled times for the following reasons:

• A robust 20 year revenue stream with limited risk of regulatory intervention

• The OFTO is protected from wind farm operating risk (the OFTO is paid as long as the transmission assets are operational, independently of whether the wind farm is generating electricity)

• There is no construction risk as operational assets are currently being tendered

• The OFTO is appointed following a transparent competitive process run by Ofgem

• There is a significant, sustained pipeline of OFTO investment opportunities worth £15-20bn extending over several years – thus bidders can gear up for a number of opportunities

• There is strong political and regulatory support for UK offshore wind – DECC estimate there will be 10 - 26 GW of offshore wind by 2020 which constitutes the mainstay of additional renewable generation to be built by 2020

Long term investors may wish to assess the next round of tenders which start in 2012 for OFTOs for the Humber Gateway, Race Bank and West of Duddon Sands wind farms with combined generating capacity of 1.3 GW and a total estimated value of circa £1bn.

By Charles Yates, Energy, Environment and Sustainability Director at Grant Thornton


Charles leads the Grant Thornton team which is advising Ofgem on the £2bn OFTO Transitional Round 2

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Become a member of the 6,500-strong A Word About Wind community today, and gain access to our premium content, exclusive lead generation and investment opportunities.