The European Investment Bank (EIB) is providing GBP 82 million for the purchase, operation and maintenance of the Humber Gateway offshore transmission system. The 19-year long term EIB loan will be provided to Humber Gateway OFTO Ltd, the consortium behind the transmission link project that comprises Balfour Beatty and Equitix.
The Humber Gateway transmission link connects the 73-turbine 220MW Humber Gateway wind farm to the mainland transmission grid at Hedon, and includes an onshore substation in Hull, an offshore substation and 40km of mostly undersea cables.
Financing provided by the European Investment Bank represents nearly 50% of eligible project costs and the long term EIB loan is alongside senior debt provided by three commercial banks, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank and Societe Generale.
“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 5 years,” said Jonathan Taylor , European Investment Bank Vice President.
Earlier this year ,the EIB agreed to provide GBP 77 million to support the transmission link to the Westermost Rough wind farm located 8 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.