Danish infrastructure fund management company Copenhagen Infrastructure Partners (CIP) has reached an agreement with transmission system operator TenneT to buy a large stake in the 900MW German North Sea offshore grid connection DolWin3 for €384m ($526m) via the investment company CI Artemis K/S.
The capital contribution will give CIP a 67% economic stake
coupled with a 49% voting interest in the project, which will link several German
offshore wind parks to the mainland. The total construction costs of the
DolWin3 connection are expected to amount to €1.9bn.
highlights our ability to attract outside equity and solidifies our financial
strength. With this transaction TenneT has a sound financial basis to execute
its onshore and offshore investment plans," says TenneT chief financial officer Otto Jager.
TenneT had awarded the contract for the construction of
DolWin3 to Alstom early last year.
The DolWin3 project involves the construction of a
900 MW DC grid connection for wind farms in the south-western part of the
German North Sea. It will be the third connection in the DolWin cluster, with
a distance from the wind farms to the coast of about 83km.
The grid connection then runs for another
79km on land to the converter station at Dörpen West, which will
serve as the onshore electricity grid coupling point.
The link is expected to be completed by late 2017.
CIP was established in October 2012 with PensionDanmark as
seed investor of €800m in CIP's first fund, Copenhagen Infrastructure I K/S.
CIP is also managing CI Artemis K/S, which was established in 2014 for the
investment in DolWin3, also with PensionDanmark as investor.