14 December 2011
Watson, Farley & Williams, a leading international law firm, is pleased to announce that it advised DONG Energy on the sale of the transmission system assets relating to the Walney I offshore wind farm project to Blue Transmission Walney 1 Limited for approximately £105.4 million. Financial close occurred on 21 October 2011, with asset transfer and completion occurring on 31 October 2011.
The purchaser is a special purpose vehicle of a consortium comprising Macquarie Capital Group Limited and Barclays Integrated Infrastructure Fund.
As part of the sale, an operation and maintenance agreement was entered into for the transmission assets, on which Watson, Farley & Williams also advised.
The sale is part of a new regulatory regime for offshore electricity transmission, whereby offshore transmission links are sold by the offshore generators to an Offshore Transmission Owner (“OFTO”) as part of a competitive tender process run by Ofgem, the UK regulator of the gas and electricity markets.
The Walney I wind farm is located approximately 15km west of Walney Island and 18km from Barrow-in-Furness, off the Cumbrian coast in northwest England, and has a total capacity of 184 MW. It was commissioned in August 2011.
The Watson, Farley & Williams team was led by Evan Stergoulis, partner and head of Energy, and Corporate partner Nick Fothergill, with property advice provided by Real Estate partner Gary Ritter. The team also included assistants Ravinder Sandhu (Corporate), Simon Alsey and Michael Kruger (Project, Commodities and Export Finance).
Evan Stergoulis said: “We have now advised DONG Energy on three of the first four completed sales of transmission assets under the new OFTO regime, which underlines our strong experience as an adviser in offshore wind and on these new and complex transactions.”