The £2.6bn Beatrice Offshore Windfarm Ltd (BOWL) project has been given the green light for construction by owners SSE (40%), Copenhagen Infrastructure Partners (CIP) (35%) and SDIC Power (25%) after the project reached Financial Close today (23 May). The new windfarm is Scotland’s largest private infrastructure project and will be one of the largest private investments ever made in Scottish infrastructure. The windfarm is expected to power roughly 450,000 homes.
The 588MW, 84 turbine, project, situated in the Outer Moray Firth, was consented by the Scottish Government in March 2014 and granted an Investment Contract by the UK government in May 2014. Today’s decision signals the green light for manufacturing and construction to begin. Work at the operations and maintenance facility in Wick and the transmission works in Moray will commence this year. Offshore construction will begin in 2017. The wind farm is expected to become fully operational in 2019.
Paul Cooley, Director of Renewables at SSE stated: “Today’s decision reaffirms SSE’s commitment to offshore wind and we are proud to progress such a flagship project for the Scottish offshore wind industry and the UK’s skilled supply chain. It shows SSE will continue to play its part in investing in the critical energy infrastructure the country needs to power homes across the UK both today and in the future.”
Christina G. Sørensen, Senior Partner in CIP says: “CIP’s investment in Beatrice represents one of the largest commitments from a financial sponsor to an offshore wind project, and follows our investment in the German offshore wind project Veja Mate in June 2015. CIP has a long track record in offshore wind and in accordance with our investment strategy, we decided to enter the project in the late development phase in November 2014. Thereby CIP has been able to actively engage in the sourcing strategy and contract execution where the fundamental risk profile of the project is decided.
“CIP’s ambition is to be a proactive financial investor and project partner in the development, construction and operations phase. The project will deliver clean, green and affordable renewable energy based on a stable investment contract price and a 15 year inflation linked revenue stream. It’s a great project with very capable partners and SSE as the experienced operator, and we look forward to continue the cooperation in the many years to come.”
Yang Lin, at SDIC Power stated: “We are delighted to see the Financial Close for Beatrice. This milestone is achieved as a result of all parties’ dedication and collaboration. Beatrice is SDIC Power’s first exposure to the European offshore wind market, and we fully believe it has a promising future. We will continue to work closely with our partners and we expect Beatrice to contribute more to the region’s economy.”
Ronnie Quinn, General Manager of The Crown Estate’s Scotland Portfolio – the business which manages leasing of the seabed and granted a lease for the Beatrice project – said:
“It’s incredibly exciting to see this project given the final go ahead. Any offshore wind farm of this scale is a very complex development – putting the finance and final lease in place for Beatrice is a huge achievement that will result in investment and jobs at a local, regional and national level. We look forward to continuing to support the team.”
The wind farm is being developed with a tier 1 supply chain comprising Seaway Heavy Lifting, Subsea 7, Nexans and Siemens.
For further information, refer to the press release from BOWL (http://sse.com/whatwedo/ourprojectsandassets/renewables/Beatrice/), which includes contact details on the media team of the Beatrice project organization.
SSE plc is one of the UK’s leading energy companies, involved in the generation, distribution and supply of electricity and in the extraction, storage, distribution and supply of gas. Its core purpose is to provide the energy people need in a reliable and sustainable way. It supplies energy to around 8.28million energy and home services customers throughout Great Britain and Ireland, is frequently ranked number one for customer service and is one of the UK’s leading generators of electricity from renewable sources. SSE became a Living Wage employer in September 2013 and was accredited with the Fair Tax Mark in October 2014. Every year it contributes around £9 billion to the UK economy. www.sse.com
About SDIC Power
SDIC Power Holdings Co., Ltd is a power generation company listed in Shanghai Stock Exchange (SH.600886). SDIC Power is primarily engaged in the investment, development, construction, operation and management of power projects. The company owns a total installed capacity of 27GW, and more than 65% of the portfolio is renewable energy capacities, including hydro power stations and wind farms. http://www.sdicpower.com
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.