EIB offer OFTO Round 3 finance

UK: The European Investment Bank (EIB) will offer finance to the successful bidders of the offshore transmission owner (OFTO) tender for the Humber Gateway and Westermost Rough offshore projects.

The first Siemens 6MW turbine has been installed at Westermost Rough

The EIB will offer a total of EUR 272 million to the eventual winners of the two Round Three auctions, around half of the total cost of the projects.

The appointed operators would be able to choose to use the money or find funding from elsewhere.

Ofgem said the funding is likely to be either in the form of a long-term loan or as a project bond.

The energy regulator refuted media reports that it was applying for the EIB loan.

Last month, Ofgem shortlisted four companies to bid for the tender to own and operate the transmission links between the offshore sites and the national grid.

The winners are expected to be announced next year.

The 219MW Humber Gateway, developed by E.on, and the 210MW Westermost Rough, being developed by Dong Energy, are currently under construction off England's west coast.