Balfour Beatty has paid £164M to acquire the Thanet offshore transmission project (OFTO).
The high-voltage electricity transmission system connects the 300MW Thanet Wind Farm, off the coast of Kent, to the onshore transmission grid.
Balfour will invest over £20M of equity in the Thanet scheme which was previously operated by energy giant Vattenfall.
The assets include one offshore and one onshore substation and over 50km of subsea cables.
Balfour Beatty’s services business will be responsible for their operation and maintenance under a licence granted by Ofgem. It gives the firm a 20-year revenue stream.
In November 2013, Balfour Beatty acquired the £317M Greater Gabbard OFTO scheme in Suffolk.
It is preferred bidder on the Gwynt y Môr OFTO in North Wales, which is expected to close in Q1 2015.
Steve Marshall, Balfour Beatty executive chairman, said: “For the investments business, the offshore transmission market is an important part of its strategy to diversify into new markets and achieving financial close on our second project is a great success.
“This project, and this market, is also an example of how Balfour Beatty Services can derive revenues from the Investments business.
“Today’s announcement supports our wider strategy of developing our delivery capability in the offshore renewables industry.”