Hong Kong billionaires bid for ownership of Britain’s offshore wind network

The richest family in Asia has bid for lucrative contracts to transfer electricity from Britain’s largest offshore wind farm to the National Grid.

UK Power Networks Services is owned by the family of Hong Kong billionaire Li Kashing. It is a member of a consortium that is bidding to control offshore wind cable systems worth £2bn.

An announcement by the industry regulator Ofgem confirms that Gravis Capital Management, ITOCHU Corporation and other consortium members include Gravis Capital Management.

Mitsubishi, EKITD Consortium, and Transmission Capital Partners are three other bidders.

The companies are competing to own and manage power transmission assets to bring generated by the Dogger Bank Offshore Wind Farm, the largest UK offshore farm to date, off the coasts of Yorkshire.

The contracts are for 25-year contracts that guarantee a stable income. Companies can submit proposals on how to run assets more cost effectively.

The cost of transmission is ultimately paid by the consumer through their bill, so it’s important to ensure that assets are well managed. Companies can also bid on transmission assets for Neart na Gaiothe Offshore Wind Farm off the Fife Coast and Moray Offshore Wind Farm West off the coast Inverness.

UK Power Networks’ ultimate control is held by the Li family conglomerate CK Hutchison. This company also owns Northern Gas Networks and Northumbrian Water.

Rebecca Barnett of Ofgem, director of networks said: “As more large offshore transmission assets are brought to the market, we see an increase in interest from investors, and we have new bidding consortiums coming up.

The increased competition in the energy sector is good for consumers, as it helps to keep costs low.

“Many investors look for green, sustainable investment that offers a stable, index-linked return – and this is what offshore transmission assets provide.

There are many opportunities to get involved for investors and consortiums.

Ofgem has announced that the UK Government will auction off assets worth £7bn in the next few years to increase the offshore wind capacity to 50 gigawatts before 2030.

Since 2011, the regulator has invested in 24 offshore transmission assets.

Mr Li has spent many years building his empire in Western countries, acquiring regulated and reliable utility companies in Britain in particular.

In 2010, his company purchased EDF’s British electric distribution business, now known as UK Power Networks, for £5.8bn.

The UK’s largest distribution network, it supplies power to over 20 million people throughout London, East and Southeast England.

In 2012, he acquired Wales and West Utilities for £645m.

The Wales and West Distribution Network supplies electricity to 7.4 million consumers and includes a 35,000-kilometre mains gas pipeline.

The tycoon, nicknamed “superman”, spent decades at the head of his conglomerate in Hong Kong as well as around the globe. His conglomerate spans everything from telecoms to container ports.

His interests in Hong Kong range from supermarket chains to internet services.

His family operates in Britain, New Zealand, Portugal, the Netherlands and in Britain. According to Forbes, their companies employ over 300,000 workers in 50 countries.

In 2018, at the age of 89, Mr Li, Hong Kong’s then richest man, retired from his business.

Victor, his eldest child, was given the reins of the business empire after a major reorganization.

Mr Li is 95 years old and still works as a senior adviser. His estimated fortune is $37bn.

Forbes ranks him as the 33rd-richest person in the entire world.