Walney Extension OFTO
OperationalOffshore GridGB660 MW2018
Basic information
9 fieldsAlso Known As
Walney Extension Transmission Assets · Diamond Transmission Partners Walney Extension · WOW03+04 Transmission Assets · Walney Extension OFTO TR5 · Walney Ext OFTO
Status
operational
Capacity
660 MW
Owners
Project Company
Type
offshore grid
Transmission Model
Developer Build & Transfer
Expected Life
20 years
Supply Chain (8)
Project Timeline (21)
11 Jun 2020Stake Transaction
Diamond Transmission Partners Walney Extension Limited completed the regulated acquisition of the Walney Extension offshore transmission assets from Walney Extension Limited for an assessed transfer value of approximately £446.6 million under Ofgem’s Tender Round 5 OFTO regime. The transaction, advised by Pinsent Masons, transferred ownership of the onshore substation, offshore substations and export cable systems forming the grid connection for the 659 MW Walney Extension wind farm, with the new OFTO owner earning a regulated revenue stream for operating these assets.
Diamond Transmission Partners Walney Extension Limited acquired from Walney Extension Limited
1 Jun 2020Joint Venture Formed
An offshore transmission joint venture company, Diamond Transmission Partners Walney Extension Limited, was established as the OFTO project company for the Walney Extension transmission assets. The company was incorporated by a consortium comprising Mitsubishi Corporation, HICL Infrastructure plc and Chubu Electrical Power, and was granted an offshore transmission licence by the Authority to own and operate the Walney Extension transmission link under the OFTO regime.
Diamond Transmission Partners Walney Extension Limited
1 Jun 2020Revenue Secured
In June 2020 Ofgem concluded its cost assessment for the Walney Extension transmission assets, determining Assessed Costs of £446,647,850 to be used as the Final Transfer Value, and confirmed that an offshore transmission licence had been granted to Diamond Transmission Partners Walney Extension Limited, which incorporated this assessed transfer value into its tender revenue stream for operating the link over the licence period.
Dec 2018Regulatory Other
After completion of construction of the Walney Extension transmission assets, Walney Extension Wind Farm Limited submitted a cost assessment template in December 2018 (the December CAT), declaring transmission asset costs of £494.2 million as its final cost submission for Ofgem’s Final Transfer Value review.
2018Construction Other
By 2018, Walney Extension Limited had completed the development and construction of the Walney Extension transmission assets, after which it submitted a December 2018 Cost Assessment Template (CAT) to Ofgem detailing £494.2m of incurred costs for the offshore transmission system.
Sept 2018Commercial Operations Full Power
The Walney Extension offshore wind farm transmission system was fully commissioned by September 2018. The 659 MW project, then the world's largest operational offshore wind farm, achieved full operational status with all 87 turbines (40 MHI Vestas 8 MW and 47 Siemens Gamesa 7 MW) generating and exporting power via the offshore transmission system in the Irish Sea.
Jun 2018Regulatory Other
Following further cost information, internal analysis and a forensic review by Grant Thornton, Ofgem calculated and in June 2018 published an Indicative Transfer Value (ITV) of £504.1 million for the Walney Extension transmission assets, providing this estimate to bidders at the Enhanced Pre‑Qualification stage of the OFTO tender.
3 Aug 2017Procurement Notice
Authority: Ofgem · Licence: Shortlisting of bidders in OFTO Tender Round 5 for the Walney Extension offshore transmission licence
On 3 August 2017, Ofgem announced that three consortia—Diamond Transmission Partners, Mari Energy Transmission, and Transmission Capital Partners—had been shortlisted to own and operate the offshore transmission links to the Galloper and Walney Extension wind farms, advancing these bidders to the Invitation to Tender stage of the OFTO process.
13 Mar 2017Procurement Notice
Authority: Ofgem · Licence: Commencement of Tender Round 5 second-tranche offshore transmission tender for Walney Extension OFTO
Ofgem’s notice under the Electricity (Competitive Tenders for Offshore Transmission Licences) Regulations 2015 states that the tender exercises for the Galloper and Walney Extension offshore transmission links would commence on 13 March 2017, marking the start of the Tender Round 5 (TR5) process and fulfilling the procurement notice event for Walney Extension OFTO.
Sept 2016Financial Other
Ofgem established an Initial Transfer Value (InTV) of £517.0 million for the Walney Extension transmission assets in September 2016, based on early cost information from Walney Extension Limited, and communicated this figure in the Preliminary Information Memorandum for Tender Round 5.