Revenue Secured

Galloper Offshore Wind Farm secured its long-term revenue support through the UK Renewables Obligation (RO) regime at financial close on 30 October 2015. As an RO-regime project, Galloper's revenue stream is tied to the policy-fixed banding under the Renewables Obligation Order rather than a project-specific contract-for-difference. At final investment decision and financial close, RWE Innogy, the UK Green Investment Bank, Siemens Financial Services and Macquarie Capital each took a 25% equity stake, and a consortium of commercial banks plus the European Investment Bank provided approximately GBP 1.37 billion of debt against a GBP 1.5 billion total project cost, with the financing package underwritten by the expected ROC revenue stream. Ofgem's Indicative Transfer Value letter for Galloper's transmission assets explicitly characterises ROCs as the project's revenue mechanism, noting the developer incurred 'additional costs to meet ROC commitments' and implemented mitigation measures to keep the project on programme and avoid delays that could 'jeopardise its ability to qualify for the Project's Renewables Obligation Certificate (ROC).' The regulator excludes those expenditures from the transmission ITV on the basis that they protect the generator's revenue stream. Together, the FID financing package and Ofgem's ROC-related characterisation confirm October 2015 as the point at which Galloper's RO-backed revenue support was secured. Month precision is used to reflect that, for RO-regime projects, revenue securing is policy-tied rather than anchored to a single signed-contract date.