Bloomberg News

Dong Sells $178 Million Wind Link in U.K. to Barclays, Macquarie

September 26, 2012

Dong Energy A/S, the biggest owner of offshore wind farms, completed its sale of power links at a wind farm off the English coast to Macquarie Group Ltd. (MQG) and Barclays Plc (BARC) for about 110 million pounds ($178 million).

The assets at the Walney 2 park off Cumbria in northern England go to Blue Transmission Walney 2 Ltd., a group combining Macquarie Capital Group Ltd. and Barclays Infrastructure Funds Management Ltd., Dong said today in an e-mailed statement.

The European Investment Bank is funding half of the debt for Blue Transmission’s purchase of the high-voltage links, the European Union’s lending arm said in another statement. The rest is provided by four unspecified commercial lenders, it said.

Blue Transmission was granted a license to own and operate the link to Walney 2 after bidding run by U.K. energy regulator Ofgem. The government, seeking to build 18 gigawatts of offshore wind by 2020 from about 2 gigawatts now, introduced bidding for associated power links to cut costs for consumers and producers.

Under the system, offshore wind generators can build assets themselves or have an offshore transmission owner, or Ofto, do so. If they opt to build, they must shift the assets to an Ofto after work is complete and before links are operating.

Oftos are chosen through bids. There were about 4 billion pounds of applications for the first 1.1 billion pounds of assets, the Department of Energy and Climate Change said.

Dong holds 50.1 percent of Walney, while SSE Plc (SSE) has 25.1 percent and Dutch pension administrator PGGM and the Ampere Equity Fund managed by Triodos Investment Management the rest. Dong and Blue Transmission agreed an operation and maintenance contract for the power assets, according to Dong’s statement.

To contact the reporter responsible for this story: Sally Bakewell in London at Sbakewell1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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