DONG sells link to world's largest wind farm for $728 million
COPENHAGEN/LONDON (Reuters) - Danish utility DONG Energy DOENRY.UL struck a deal with its partners E.ON (EONGn.DE) and Masdar worth 4.1 billion Danish crowns ($728.48 million) to sell a power cable giving access to the world's largest wind farm.
A consortium including Barclays Infrastructure Funds Management Limited and a subsidiary of Mitsubishi Corporation (8058.T) won the tender, allowing them to maintain and operate the transmission link to the London Array offshore wind farm for 20 years.
The deal is Britain's largest offshore wind transmission sale to date and underlines a trend for institutional investors to take positions Europe's growing renewable energy market.
Offshore wind farm developers are required by the regulator Ofgem to open their transmission assets for tender to encourage competition and lower prices, Ofgem said.
To date, eight offshore transmission tenders have been held in Britain, the world's biggest offshore wind market, at a value of more than 1 billion pounds.
Two further offshore wind transmission assets are up for sale, the 346 million pound connection to the Gwynt y Mor project and a cable connecting the Lincs wind farm, valued at 282 million pounds.
The Balfour Beatty Equitix Consortium was shortlisted as preferred bidder for Gwynt y Mor and Transmission Capital Partners was earmarked for Lincs. ($1 = 0.6361 British pounds)