This is Balfour Beatty’s first offshore transmission investment as part of Ofgem’s offshore transmission owner (OFTO) tender regime.
The company will jointly own the OFTO assets and be responsible for their operation and maintenance under a long-term licence granted by Ofgem with a 20-year revenue entitlement.
The Greater Gabbard OFTO is the high-voltage transmission system which connects the 504MW Greater Gabbard Wind Farm located off the coast of Suffolk to the onshore transmission grid.
Greater Gabbard will generate enough electricity to power around 500,000 homes each year. The OFTO assets include two offshore and one onshore substation and over 150km of sub-sea cable infrastructure.
Balfour Beatty CEO, Andrew McNaughton, said: “Reaching close on Greater Gabbard reinforces Balfour Beatty’s leading position in the growing and potentially very large offshore transmission markets.
“It is also a significant step in the development of our investment business in non-PPP infrastructure markets, as well as our wider strategy of developing our delivery capability in the offshore renewables industry.”