06 December 2023 Deals | Renewable Power

Equitix and TEPCO Power Grid reach financial close on Triton Knoll OFTO

Equitix  today announced that its consortium with Tokyo-based TEPCO Power Grid (TEPCO PG) has reached financial close on the c. £600 million Triton Knoll Offshore Electricity Transmission (OFTO) project.

The Triton Knoll windfarm comprises 90 turbines with a maximum installed capacity of 857MW, equivalent to generating enough renewable power for 800,000 UK homes, playing a key role in decarbonising our power system by 2035 and helping the UK achieve net zero by 2050. 

The Triton Knoll OFTO Transmission Assets include two offshore substations, two 220kV subsea export cable circuits (approximately 50km in length), which connect to two onshore cable circuits (of approximately 57km in length), one onshore substation, and two 400kV export cable circuits connecting the onshore substation to the National Grid Bicker Fen onshore substation. 

Triton Knoll OFTO is the fifth OFTO investment for Equitix, who has been consistently investing in the OFTO and wider renewable power sectors for over a decade. The UK offshore sector alone has an estimated upcoming pipeline of £12bn over the next five years.  Equitix is one of the UK’s most experienced investors in energy transition and renewables, with assets valued at more than £10bn. 

Achal Bhuwania, CIO, Equitix said: 

We are delighted with the financial close of our investment in Triton Knoll OFTO which makes material contributions towards achieving UK’s Net Zero ambitions. Equitix has consistently played a major role in attracting foreign direct investment into UK infrastructure for the past 15 years and our partnership with TEPCO on this investment is an excellent testament to that.

Board Member and Managing Executive Officer, Kazuhiko SHIBA, TEPCO PG said:

We are delighted to be part of Triton Knoll OFTO, together with Equitix, a project that contributes to the UK’s renewable energy production.  TEPCO PG continues to support power network development for a Net Zero Society in Japan, the UK and the world.

Equitix will be the 80% majority shareholder in Triton Knoll OFTO, with TEPCO PG owing the remaining 20%.   The Equitix TEPCO PG Consortium will own and operate the offshore transmission link to the Triton Knoll wind farm for the next 23 years. Electricity Distribution Services, part of the James Fisher & Sons group, will be responsible for the operation and maintenance of the OFTO transmission assets.

Alongside co-investors TEPCO Power Grid, key lenders include Japan Bank for International Cooperation (JBIC), Aviva Investors, Sumitomo Mitsui Banking Corporation, Société Générale and Barclays.

Project developers were led by RWE Renewables, with J-Power and Kansai.

RWE Renewables (RWER) is a subsidiary of RWE AG and is one of the world’s leading renewable energy companies headquartered in Germany. RWER’s offshore wind portfolio (as at September 2020) includes 17 operational wind farms, nine of which are in Great Britain. With a large investment budget to support further growth in renewables, RWER is helping to drive RWE AG’s ambition to move nearer to a carbon neutral future.

J-POWER is the brand name for the Electric Power Development Co., Ltd, one of Japan’s leading power generation companies.  Kansai Electric Power Co., Inc. is a Japanese leading energy company, with generated energy of 113 billion kWh and more than 31GW of general capacity worldwide.