Groupe Eurotunnel has completed the acquisition of Star Capital’s 51% holding in ElecLink for €75 million (US$84 million). Groupe Eurotunnel hold now 100% of ElecLink.
ElecLink, established in 2011, will build and operate a 1,000MW high-voltage electricity interconnector between the United Kingdom and France. Construction of the €500 million (US$557 million) project must start before 31 July 2017 and the interconnector must start operating before 31 July 2020. Steven Moore has been confirmed in the role of Chief Executive Officer.
Once operational, ElecLink will increase the existing interconnection capacity between the two countries by 50% thereby enhancing of electricity supply for both businesses and domestic consumers. In the context of energy transition and the risks of domestic electricity generation not meeting demand in the future, the United Kingdom and France will be able to benefit from greater security and flexibility of energy.
Under the terms of the 25 year exemption granted to ElecLink by the national regulatory authorities, the group will shortly hold an auction for part of the capacity of the new cable, which will then enable the financing of the project to be put in place without impacting the Group’s credit rating.
Jacques Gounon, Chairman and CEO of Groupe Eurotunnel stated:
"By investing in an infrastructure for the transport and exchange of electricity, Eurotunnel is using its expertise in regulated environments to reinforce its long-term strategy based on recurrent and predictable returns for value creation".