A consortium consisting Mitsubishi Corporation (MC), Chubu Electric Power and HICL Infrastructure has been shortlisted as the preferred bidder for the Walney Extension Offshore Wind Farm offshore transmission link (Walney OFTO) in the UK.
Selected by UK’s Office of Gas and Electricity Markets (Ofgem), Diamond Transmission Partners (DTP) will own and operate the Walney OFTO.
With a value of nearly £500m ($663m) the new OFTO asset includes subsea cables, land cables, offshore substations and an onshore substation.
These are integrated with the Walney Extension offshore windfarm, which is located approximately 30km off the UK’s western coast.
The consortium intends to begin the electricity transmission business for a period of 20 years, after acquiring the asset and obtaining an offshore transmission owner (OFTO) licence from Ofgem.
MC will now carry out its operations through its wholly owned subsidiary Diamond Transmission Corporation (DTC).
Using its operational experience in the neighbouring Walney 1 and Walney 2 assets, DTC will be operating the electricity transmission business.
For Chebu, the acquisition will be first in the UK market. Chebu will provide technical knowledge in the operation of transmission and distribution systems.
Last June, MC was selected as the preferred bidder for an offshore electricity transmission asset in the UK.
The new asset connects the 573MW Race Bank offshore windfarm with the Walpole substation owned by National Grid.