International Public Partnerships expects to invest around £68 million in the offshore electricity transmission assets connecting the Moray West wind farm in the Moray Firth to the network.
The listed infrastructure investment company said publication of proposed licence documentation by energy regulator Ofgem on 14 October marked a key regulatory step towards financial close, which it anticipates in December 2026.
The investment would be INPP’s twelfth in an offshore transmission owner project. The company expects it to generate double-digit, inflation-protected returns, with 23.5 years of availability-based revenues linked to the UK Consumer Price Index.
INPP said the project would provide renewable capacity equivalent to the electricity needs of around 1.3 million homes, taking the equivalent across its offshore transmission portfolio to around five million homes.
The company expects to fund the investment through a combination of proceeds from asset realisations, surplus cash and short-term corporate debt facilities. It said the debt facilities would help align the investment with the timing of cash receipts from its realisation activities.
As at 14 October, around £36 million of INPP’s £350 million corporate debt facility was drawn. A further £180 million was committed through letters of credit, mainly supporting its commitment to the Sizewell C nuclear project.
INPP said further equity injections into Sizewell C would reduce the associated outstanding letters of credit and release additional headroom in the facility.
The company has realised, or committed to realise, more than £440 million across its portfolio since July 2023. It said all those realisations were in line with or above the relevant published net asset value.
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Over the same period, INPP has announced commitments to reinvest around £480 million in investments with an average return exceeding 11%, including Moray West. The company said this capital recycling had increased returns by more than two percentage points for every pound recycled.
INPP invests in more than 130 infrastructure projects and businesses across sectors including utilities and transmission, transport, education, health and digital infrastructure. Amber Infrastructure Group acts as its investment adviser.
