German energy company Innogy has agreed to sell a 41% stake in its 860MW Triton Knoll offshore wind farm in the UK to Japan’s J-Power (25%) and Kansai Electric Power (16%).
Innogy Renewables UK Ltd., a subsidiary of innogy, has signed the agreement with Electric Power Development, operating under the name J-Power, through its subsidiary JP Renewable Europe Company (JPREC), and to Kansai Electric Power, through its subsidiary KPIC Netherlands B.V. Innogy will retain the majority equity stake of 59%.
The closing of the transaction is subject to the approval of the Supervisory Board of innogy SE and financial close with the debt funding of the Triton Knoll project, which is expected in the third quarter of 2018.
Makoto Honda, Director and Executive Managing Officer, J-Power, said: “As the leading provider of wind power in Japan, we are very proud of entering into this overseas offshore wind power project which is a first for a Japanese electric power utility. We are actively continuing to develop new wind power projects both in the domestic market and in the overseas market.”
The planned investment volume in the Triton Knoll project amounts to approximately GBP 2 billion. JPREC will procure a part of its investment funds by issuing preferred equity to Development Bank of Japan Inc.
“This is the first case of Japanese electric power utility which has entered into the overseas offshore wind power project. In Europe, since it is predicted that renewable energy will be drastically developed, we are very proud to achieving a new important milestone in the excellent relationship with innogy and J-Power,” Hiroshi Nakajima, Managing Executive Officer, International Business and Cooperation Division, Kansai Electric Power Company, said.
Triton Knoll was awarded a Contract for Difference (CfD) by the UK Department for Business, Energy & Industrial Strategy (BEIS) in the latest auction round in September 2017.
Hans Bünting, COO Renewables of innogy SE, said: “As we continue to grow our offshore portfolio across the globe, the securing of valued, strategic partnerships is a key objective within our strategy. The signed agreement highlights the attractiveness of our offshore development projects. With J-Power and Kansai Electric Power we have found experienced and reliable partners and we are delighted to be working with them to successfully realise the Triton Knoll Offshore Wind Farm together.”
The Triton Knoll wind farm is located 32 kilometres off the coast of Lincolnshire in the east of England. It will comprise 90 MHI Vestas’ V164-9.5 MW wind turbines. Innogy will manage the construction as well as operation and maintenance works on behalf of the project partners.
Enabling works are now underway at the site of the project’s onshore electrical system, which includes a 57km underground cable route, landfall infrastructure and construction of a new onshore substation at Bicker Fen, in Lincolnshire.
Full construction of the onshore electrical system is on schedule to begin shortly, with offshore construction expected to begin in late 2019. The commissioning of the wind farm is scheduled to start in 2021.