As reported, 13 bidders would get the loans in tenders to own and operate the power cables from six wind projects, which have a total capacity of 1.6GW. The funding is said to be part of a programme of the UK energy regulator Ofgem to boost competition in offshore connection.
Phil Hunt, the UK energy minister, is quoted by Bloomberg as saying: “This money would help projects currently under construction get their cables in the water and feeding into the grid quickly and cheaply.”
The costs for connecting the wind projects could reach GBP1 billion, said Ofgem spokesman Mark Wiltsher.
The funding, which would be considered in November 2009, is accessible to Macquarie Capital Group, Offshore Transmission, Balfour Beatty Capital and other companies. The companies, according to Ofgem, could bid to own and manage the cables of the wind projects. A final agreement is expected to be made in December 2009 while agreements for the EIB funding would be awarded in April 2010.
