Centrus consortium appointed to advise Ofgem under new four-year contract for offshore electricity transmission assets
Centrus is delighted that Ofgem has chosen its consortium to continue to act as financial adviser on the sales processes to select the offshore transmission owners (“OFTOs”) for the transmission assets related to offshore wind farms.
The contract will commence with the auction related to Seagreen Phase 1 Offshore Wind Farm under the Tender Round 9 process (“TR9”) with a capital value of approximately £1 billion. This follows the consortium’s appointment in 2020 as financial adviser to Ofgem on Tender Rounds 7 and 8 (“TR7” and “TR8”).
Seagreen wind farm is situated off the east coast of Scotland with the assets contributing over 1GW to the UK’s target of connecting 40GW of offshore wind generation by 2030.
The new contract is expected to last up to four years. In addition to supporting Ofgem in running robust competitive processes, the new contract provides for the consortium to give corporate finance advice to Ofgem on other aspects of OFTO licences, including extension or retendering of existing licences at the end of their term, forensic accounting reviews and potentially on other licence adjustments such as for income adjusting events.
The consortium remains unchanged from TR7 and TR8 comprising Centrus, Smith Square Partners and CEPA for financial and related economic advice, with tax advice provided by BDO and forensic cost reviews by Grant Thornton.
Announcement date: 20th January 2022