On 26 September 2019, the Gunfleet Sands OFTO business refinanced its original non‑recourse bank debt with a new loan provided by its shareholder. This refinancing replaced the initial project finance facilities used to acquire the transmission assets, aligning the capital structure with the regulatory framework and INPP group objectives while maintaining funding for the remaining licence term.
On 17 August 2018, Boskalis Subsea Cables & Flexibles (formerly VBMS) signed a five‑year subsea cable repair framework agreement with Transmission Capital Partners covering all subsea export cables in its OFTO portfolio, including the single 132 kV Gunfleet Sands offshore export cable. Under this framework, Boskalis provides universal subsea cable joints compatible with the portfolio cables, dedicated vessel availability and engineering expertise to support rapid mobilisation for export cable repair and maintenance, enhancing contingency planning and maximising availability of the Gunfleet Sands OFTO grid connection.
On 2 August 2016, Transmission Capital Services Limited engaged Offshore Wind Consultants Limited (OWC) under a technical consultancy contract covering the OFTO assets it manages, including TC Gunfleet Sands OFTO Limited. OWC was appointed to develop export cable repair and maintenance strategies, future maintenance contract strategies, and specification and tender packages, as well as detailed employer’s requirements for cable repair operations in different water depths and for different cable types, thereby supporting contingency planning and long-term integrity of the Gunfleet Sands OFTO transmission assets as part of the wider portfolio.
On 4 August 2011, Ofgem published its final cost assessment report for the Gunfleet Sands transmission assets, concluding the cost assessment process for this first-round OFTO project. The Authority determined an assessed transfer value of £49,467,108 (around £49.47 million) for the offshore substation and the submarine and land export cables, up from an initial estimate of £46.4 million and an indicative value of £48.2 million, and used this figure to set the regulated transfer price and underpin the tender revenue stream for TC Gunfleet Sands OFTO Ltd.
In July 2011, Transmission Capital Partners, a consortium of Transmission Capital, International Public Partnerships (INPP) and Amber Infrastructure Group, established the special purpose company TC Gunfleet Sands OFTO Ltd to hold the offshore transmission licence and own and operate the Gunfleet Sands offshore transmission assets. This project company structure provided the long‑term ownership vehicle for the 173 MW Gunfleet Sands offshore transmission link under the UK’s OFTO regime, coinciding with financial close on the transmission link in July 2011.
TC Gunfleet Sands OFTO Ltd
Authority: Ofgem · Licence: Offshore electricity transmission licence for the Gunfleet Sands transmission assets
On 19 July 2011 the Gas and Electricity Markets Authority (Ofgem) granted an offshore electricity transmission licence to TC Gunfleet Sands OFTO Ltd, allowing it to own and operate the Gunfleet Sands offshore transmission assets. On the same date the company took ownership of the offshore substation and associated 132 kV export and onshore cables connecting the Gunfleet Sands 1 and 2 wind farms to the 132 kV distribution network at Clacton, Essex, with an assessed transfer value of approximately £49.5 million.
Authority: Ofgem · Licence: Approval of Statement of the Basis of Offshore Transmission Owner Charges for TC Gunfleet Sands OFTO Ltd
The Gas and Electricity Markets Authority (Ofgem) approved TC Gunfleet Sands OFTO Ltd’s first Statement of the Basis of Offshore Transmission Owner Charges on 19 July 2011, with the statement effective from the same date. This regulatory document, required under Amended Standard Condition E12-J9 of the offshore transmission licence, sets out how the OFTO charges National Grid Electricity Transmission (as NETSO) for transmission owner services, including general system charges, site-specific charges, OFTO of last resort charges, and other items such as application fees and outage-change costs for the Gunfleet Sands offshore transmission assets.
Ofgem granted TC Gunfleet Sands OFTO Limited (a Transmission Capital Partners SPV) a licence to own and operate the Gunfleet Sands 1 and 2 offshore transmission assets on 19 July 2011. The transfer value was GBP 49.5 million. Assets transferred from DONG Energy (now Orsted) under Ofgem's OFTO Tender Round 1.
Transmission Capital acquired from Ørsted (100%)
On 19 July 2011, the Transmission Capital Partners consortium reached financial close on the Gunfleet Sands offshore transmission project, with its licensee TC Gunfleet Sands OFTO Limited purchasing the offshore and onshore transmission assets for a transfer value of £49.5 million. The acquisition, financed through a mix of INPP-provided equity and subordinated debt alongside senior bank loans, secured long-term ownership and operation of the transmission link for the Gunfleet Sands 1 & 2 wind farms under the UK OFTO regime.
On 19 July 2011, TC Gunfleet Sands OFTO Limited was granted an offshore transmission licence, establishing a 20‑year availability‑based, index‑linked revenue stream for operating the Gunfleet Sands transmission assets. Under this licence the OFTO earns regulated annual revenue of around £6.1 million, guaranteed by National Grid Electricity Transmission plc, with income independent of wind farm output and protected by downside caps.