Equitix and Kyuden Group to acquire Seagreen Phase 1 offshore transmission assets in major renewable energy deal

Equitix, in partnership with Kyuden International Corporation and Kyushu Electric Power Transmission and Distribution Company, Incorporated (Kyuden Group), has reached an agreement to acquire the Seagreen Phase 1 offshore transmission assets from Seagreen Wind Energy Limited (SWEL). This transaction marks a significant expansion of Equitix’s offshore transmission owner (OFTO) portfolio, further cementing its role in the UK’s renewable energy infrastructure.

Seagreen Phase 1, located approximately 27 km off the coast of Angus, is Scotland‘s largest offshore wind farm and the world’s deepest fixed-bottom offshore wind farm. The wind farm has an installed capacity of 1,075MW and plays a key role in the UK’s shift toward clean energy generation. The project’s offshore transmission system consists of three export cables, each spanning approximately 64 km offshore, along with 20 km of onshore transmission infrastructure that connects to a substation in Angus.

The transmission assets, which include subsea export cables, an offshore substation, onshore export cables, and an onshore substation, will be owned, operated, and maintained by Equitix and Kyuden Group under a 24-year transmission license granted by the Office of Gas and Electricity Markets (Ofgem).

How Will the Acquisition of Seagreen OFTO Impact the UK’s Renewable Energy Sector?

The acquisition of the Seagreen OFTO aligns with the UK government’s ambition to achieve 50GW of offshore wind capacity by 2030. With the ability to supply power to more than 1.6 million homes, covering roughly two-thirds of all Scottish households, Seagreen Phase 1 is a critical asset in the country’s drive toward net-zero carbon emissions. The project is expected to displace over 2 million tonnes of carbon dioxide annually, reducing dependence on fossil fuel-based electricity generation.

Equitix’s growing OFTO portfolio, which already comprises six offshore transmission assets capable of transmitting approximately 3.5GW of power, demonstrates its commitment to long-term renewable energy investments. Additionally, Equitix and Kyuden Group have been selected as the preferred bidders for Dogger Bank A OFTO, another major offshore wind transmission project set to reach financial close later this year.

Why Is Equitix Investing in Offshore Transmission Assets?

Equitix’s investment in the Seagreen OFTO is a strategic move to strengthen its position in the UK offshore wind energy sector. Offshore transmission systems are essential in ensuring that wind-generated power reaches consumers efficiently. As the demand for renewable energy infrastructure grows, investing in transmission assets provides Equitix with stable, long-term returns while contributing to sustainable energy development.

A key factor driving the interest in offshore wind transmission is the UK’s regulated revenue model for OFTOs, which provides predictable returns for investors. The UK government has established a framework that allows private sector investors to own and operate transmission infrastructure, ensuring that renewable energy projects remain financially viable.

How Will This Acquisition Benefit Equitix and Kyuden Group?

For Equitix, the acquisition enhances its existing portfolio of offshore energy transmission assets, reinforcing its expertise in managing critical renewable power infrastructure. The company has consistently expanded its presence in the offshore wind energy sector, and securing the Seagreen OFTO strengthens its ability to deliver long-term value to investors.

Kyuden Group, which has been increasing its presence in European energy markets, views the Seagreen OFTO acquisition as an opportunity to contribute to the UK’s renewable energy transition while expanding its international business operations. The company’s participation in offshore wind transmission projects supports its long-term goal of promoting low-carbon energy solutions and diversifying its global investments in clean energy infrastructure.

How Was the Seagreen Phase 1 Project Financed?

The Seagreen Phase 1 offshore wind farm was developed by Seagreen Wind Energy Limited as a joint venture between SSE Renewables, TotalEnergies, and PTTEP. The project was one of the largest infrastructure developments undertaken in Scotland, contributing over £1 billion to the Scottish economy and supporting approximately 4,000 jobs during construction, according to an independent analysis conducted by PwC.

The acquisition of the Seagreen OFTO transmission assets was financed through a combination of equity investments from Equitix and Kyuden Group and debt financing from a group of lenders, including The Japan Bank for International Cooperation, Sumitomo Mitsui Trust Bank Limited (London Branch), Mizuho Bank, Ltd., and Aviva Life & Pensions UK Limited.

What Does the Future Hold for Offshore Wind Energy Investments?

The UK’s commitment to expanding offshore wind capacity continues to drive investment in offshore transmission infrastructure. As the demand for renewable power transmission assets increases, companies like Equitix and Kyuden Group are well-positioned to play a pivotal role in the sector.

With offshore wind projects becoming larger and more complex, securing reliable transmission networks is essential for ensuring that power reaches consumers efficiently. The Seagreen OFTO acquisition underscores the growing confidence in the long-term viability of offshore wind energy investments, reinforcing the UK’s leadership in clean energy infrastructure development.

Equitix’s continued expansion in the OFTO market, along with its participation in the Dogger Bank A OFTO, reflects a broader trend of institutional investors supporting renewable energy projects. As the UK moves toward net-zero emissions, the role of private sector investment in energy transmission infrastructure will remain critical.

The acquisition of the Seagreen Phase 1 offshore transmission assets by Equitix and Kyuden Group represents a significant milestone in the UK’s offshore wind energy expansion. As one of the largest and most advanced offshore wind projects, Seagreen Phase 1 will continue to play a vital role in delivering clean energy, supporting economic growth, and reducing carbon emissions.

By investing in offshore transmission infrastructure, Equitix and Kyuden Group are not only strengthening their renewable energy portfolios but also contributing to a more sustainable future. As offshore wind capacity continues to grow, strategic acquisitions like this will remain essential in advancing the UK’s clean energy ambitions.