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Centrus consortium appointed to advise Ofgem on the TR7 auction of offshore electricity transmission assets

Centrus is pleased to announce its appointment, with consortium partner firms Smith Square Partners and CEPA, by the Office of Gas and Electricity Markets (“Ofgem”) as financial adviser on the competitive tender process to select the offshore transmission owners (“OFTOs”) of electricity transmission cable assets for the Triton Knoll and Moray East offshore wind farms. The transmission assets will command capital values in excess of £1 billion in aggregate.

In addition to Centrus’ infrastructure finance expertise, the consortium brings together the highly regarded specialist capabilities and sector experience of Smith Square Partners and CEPA. Smith Square Partners is a leading independently-owned corporate finance firm, and a supplier under the Crown Commercial Service Corporate Finance Services framework. CEPA is a global economics and regulatory consultancy which has previously advised Ofgem on a wide range of assignments in the OFTO sector, including two previous tender rounds. In addition, as part of the consortium, tax and cost accounting advice will be provided by BDO and Grant Thornton respectively, both firms with strong sector experience and with Grant Thornton having undertaken similar cost assessment for previous tender processes for Ofgem.

The consortium has been appointed under the Crown Commercial Service Corporate Finance Services framework. The tender competition is being run under the Tender Round 7 (“TR7”) process. An industry launch event for TR7 attended by infrastructure investors, debt finance providers, insurers and technical consultants will be held on 20th  November 2020.

Triton Knoll wind farm is an 850MW wind farm under construction 33km off the coast of Lincolnshire with an expected completion date in 2022. Moray East is a 950MW wind farm 22km off the Aberdeenshire coast with an expected completion date in 2022. Together, they will produce energy sufficient to power approximately 2 million homes.

Adam MacDonald, managing director - Centrus We’re delighted to be working with Smith Square Partners and CEPA as part of a strong advisory consortium, delivering investment to the vital infrastructure supporting the UK’s offshore wind industry, a key success story in our green economy.
Patrick Taylor, director - CEPA We are pleased to be continuing our involvement in the transition of the GB energy sector and extending our support of Ofgem in the offshore transmission sector. We look forward to combining our resources with those of the other consortium members, to form a team that can provide the specialist expertise that the tender competition process requires.