Ofgem has said it intends to award Blue Transmission a long-term lease for the ownership and operation of the high-voltage (HV) export cable linking the London Array offshore wind farm to the UK electricity grid.
The regulator estimates the value of the cable and associated assets at £428m.
Blue Transmission is a company created specifically to invest in the UK’s lucrative offshore wind transmission assets. Owned by Macquarie Capital, Barclays, Mitsubishi and Frontier Power, the company already owns Walney 1’s export cable.
Commenting on Ofgem’s decision to name Blue Transmission as its preferred bidder, Ofgem E-Serve managing director, Robert Hull, said: "The appointment of Blue Transmission as the preferred bidder to own and operate offshore links for the London Array (Phase 1) project is a significant milestone for the offshore wind regime. It is the largest offshore transmission project to have reached this stage and has been the most competitive tender to date."
Should Blue Transmission fail to secure the London Array assets, Ofgem will turn to its reserve bidder, the Balfour Beatty Equitix Consortium.
Another active player in the UK offshore transmission owners market is Capital Transmission Partners, which has purchased the assets linking Ormonde, Robin Rigg, Gunfleet Sands and Barrow offshore wind farms, and has been named preferred bidder for Lincs.
Ofgem’s next sales of offshore transmission assets will focus on Gwynt-y-Môr and West of Duddon Sands.