EURm 384 Investment in Offshore Grid Connection

EUR 384 million investment in new offshore grid connection for North Sea wind farms

Copenhagen Infrastructure Partners (CIP) and the Dutch company TenneT are to make a joint investment in the DolWin3 offshore grid connection, which will transmit wind energy from the North Sea to German customers.

Copenhagen Infrastructure Partners (CIP) is investing DKK 2.9 billion (EUR 384 million) in the DolWin3 grid connection, which will transmit electricity to the mainland from a number of wind farms in the German North Sea. DolWin3 is planned to be completed in 2017 and the system will have a total capacity of 900 MW.

The investment in DolWin3 is a joint venture between CIP and TenneT. TenneT will finance the largest portion of the construction costs, which are expected to amount to DKK 14.2 billion (EUR 1.9 billion). TenneT is one of the largest electricity transmission operators in Europe and is owned by the Dutch state.

“We have entered into an attractive and long-term partnership with one of the key players in the European energy transmission market. Moreover, with this investment we contribute to the development of the infrastructure in one of the strongest economies in Europe,” says Christian Skakkebæk, a senior partner in CIP.

TenneT will build and operate DolWin3.

“The investment complements our other investments in energy assets. With the stable German framework for the regulated infrastructure sector, as well as TenneT being a strong and experienced operator, the investment will ensure a solid and stable return for many years to come,” says Christian Skakkebæk.

The investment is subject to the approval of the German competition authorities.

The investment will be made through a separate legal structure with PensionDanmark as the investor.

About Copenhagen Infrastructure Partners (CIP)
The management company CIP was established in 2012, with PensionDanmark as a seed investor committing DKK 6 billion (EUR 800 million) to CIP’s first fund, Copenhagen Infrastructure I K/S. CIP is currently owned and managed by four partners (Jakob Baruël Poulsen, Rune Bro Róin, Torsten Lodberg Smed and Christian Skakkebæk) with a fifth (Christina Grumstrup Sørensen) joining from 1 March 2014. All have significant expertise and many years’ experience in infrastructure investments.

About TenneT
TenneT is Europe’s first cross-border electricity transmission operator. With approximately 20,000 kilometres of high-voltage lines and 36 million end-users in the Netherlands and Germany, TenneT ranks among the top five grid operators in Europe. It’s focus is to develop a Northwest European energy market and to integrate renewable energy. Taking power further.

Advisors on the Transaction

TenneT was advised by ABNAMRO, Deutsche Bank and Hengeler Mueller.

CIP was advised by FIH PARTNERS and Watson, Farley & Williams and Offshore Management Resources.

About Copenhagen Infrastructure Partners

Copenhagen Infrastructure Partners P/S (CIP) is a fund management company focused on energy infrastructure including offshore wind, onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, and other energy assets like reserve capacity and storage. CIP has approximately 110 employees and offices in Copenhagen, Taipei, New York, Tokyo, Utrecht, and London.

CIP manages six funds and has more than EUR 8 bn under management. CI I, CI A I and CI A II have PensionDanmark as founding- and sole investor. CI II has 19 Danish and international institutional investors and CI III has 42 institutional investors from the Nordics, Continental Europe, the UK, Israel, Asia, Australia, and multi-lateral organizations e.g. EIB. CI NMF I has 15 investors from the Nordics and Continental Europe.

CIP was founded in 2012 by senior executives from the energy industry in cooperation with Pension Denmark.