OFGEM announcement on Moray East OFTO investment
OFGEM ANNOUNCEMENT ON MORAY EAST OFTO INVESTMENT
20 December 2023
International Public Partnerships Limited, the listed infrastructure investment company ('the Company', 'INPP'), notes that Ofgem, as anticipated, published a notice under Section 8A of the Electricity Act 1989 on 20 December 2023 relating to the Moray East Offshore Transmission project ('OFTO')[1]. This is a key step towards reaching financial close on the investment that the Company expects to make in the project. The Company expects to invest up to c.£85 million into the project upon financial close, anticipated to be in February 2024.
The Moray East OFTO relates to the offshore electricity transmission assets connecting to the Moray East wind farm located in the Moray Firth off the coast of Scotland.
This investment will represent the Company's eleventh OFTO investment and will further increase the Company's contribution to the UK's transition to a net zero carbon economy. The Moray East OFTO has the capacity to transmit sufficient renewable electricity to power the equivalent of c.1.0 million homes, increasing the total equivalent across the Company's OFTO portfolio to c.3.7 million homes.
At financial close, the OFTO will be granted a 23-year revenue period during which it will have no exposure to electricity production or price but will be paid an availability-based revenue stream linked to UK inflation (as measured by the Retail Price Index).
ENDS.
For further information:
Erica Sibree +44 (0) 7557 676 499
Amber Fund Management Limited
Hugh Jonathan +44 (0)20 7260 1263
Numis Securities
Ed Berry/Mitch Barltrop +44 (0) 7703 330 199 / (0) 7807 296 032
FTI Consulting
About International Public Partnerships (INPP):
INPP is a listed infrastructure investment company that invests in global public infrastructure projects and businesses, which meets societal and environmental needs, both now, and into the future.
INPP is a responsible, long-term investor in over 140 infrastructure projects and businesses. The portfolio consists of utility and transmission, transport, education, health, justice and digital infrastructure projects and businesses, in the UK, Europe, Australia, New Zealand and North America. INPP seeks to provide its shareholders with both a long-term yield and capital growth.
Amber Infrastructure Group ('Amber') is the Investment Adviser to INPP and consists of over 170 staff who are responsible for the management of, advice on and origination of infrastructure investments.
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