International Public Partnerships (LSE:INPP) has reported progress towards its planned £68 million investment in the Moray West Offshore Transmission Owner (OFTO) project following the publication of proposed licence terms and associated documentation by UK energy regulator Ofgem.
The regulatory development represents a further stage in the approval process for the offshore transmission project, with financial close currently expected in December 2026.
The Moray West OFTO will provide electricity transmission infrastructure connecting the Moray West offshore wind farm, located in the Moray Firth off the Scottish coast, to the wider electricity network.
INPP expects the investment to generate double-digit, inflation-protected returns through an availability-based revenue arrangement extending over 23.5 years. Revenues under the proposed structure will be linked to the Consumer Prices Index (CPI), providing contractual inflation adjustments over the investment period.
Subject to completion, Moray West would become INPP’s twelfth OFTO investment, expanding its portfolio of regulated electricity transmission assets in the United Kingdom.
The Moray West wind farm is expected to provide renewable electricity generation capacity equivalent to the needs of approximately 1.3 million homes. Following the addition of Moray West, INPP’s OFTO portfolio would cover renewable generation capacity equivalent to supplying approximately 5 million homes.
The proposed transaction also forms part of INPP’s capital recycling strategy, under which the company reallocates capital from existing investments into new infrastructure opportunities. According to INPP, this approach has increased returns by more than 2% for each pound reinvested.
The investment remains subject to the completion of the relevant regulatory and transaction processes, with the company targeting financial close before the end of 2026.
About International Public Partnerships
International Public Partnerships (LSE:INPP) is a listed infrastructure investment company with a portfolio of more than 130 assets across the United Kingdom, Europe, Australia, New Zealand and North America.
Its investments cover utility and energy transmission infrastructure, transport, education, healthcare, justice facilities and digital infrastructure.
The company focuses on public infrastructure investments intended to generate long-term income and capital growth for shareholders, including assets operating under regulated or contractual revenue arrangements.
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