Transaction marks SSE’s entry into Southern Europe and brings a c.3.9GW portfolio of onshore wind growth initiatives throughout Spain, France, Italy and GreecePortfolio contains scope for 1GW of further co-located photo voltaic growth alternativeBuilds platform for SSE’s development in Europe the place it goals to progress a balanced portfolio of property throughout wind, photo voltaic, batteries and hydrogen initiatives
SSE Renewables has entered into an settlement with Siemens Gamesa Renewable Vitality (SGRE) to amass its current European renewable power growth platform for a consideration of €580m*.
The SGRE portfolio contains c.3.9GW of onshore wind growth initiatives – round half of which is positioned in Spain with the rest throughout France, Italy and Greece – with scope for as much as 1GW of further co-located photo voltaic growth alternatives. SSE Renewables will even tackle a workforce of round 40 workers with huge expertise within the sector.
The transaction is more likely to be accomplished by the top of September 2022, topic to receipt of related overseas direct funding and regulatory approvals.
The acquisition marks entry by SSE Renewables into Southern Europe, constructing on its profitable renewables enterprise within the UK and Eire the place it owns and operates 4GW of renewable property, together with practically 2GW of onshore wind, with a secured pipeline of practically 11GW throughout onshore wind, offshore wind and hydro initiatives.
The transaction will deliver collectively the present SGRE administration workforce’s vital growth expertise throughout continental Europe and SSE’s experience in establishing and working wind farms, supported by its steadiness sheet power.
With lots of the initiatives within the SGRE portfolio at an early stage of growth, the present SGRE groups will likely be an integral a part of progressing the initiatives and supporting SSE’s development technique in Europe.
The 4 nations during which the SGRE portfolio of growth property are positioned have sturdy development prospects, underpinned by 2030 renewables or carbon discount targets and engaging remuneration schemes. The platform, alongside the skilled growth groups, will present a wonderful base for continued sourcing of growth alternatives throughout onshore and offshore wind, photo voltaic, batteries and hydrogen, all of that are core to SSE’s development technique. It additionally presents alternatives to enter wider European markets.
“We’re delighted to spice up the supply of SSE’s Internet Zero Acceleration Program by increasing our current renewables enterprise into Southern Europe by way of this acquisition. Mainland Europe is an thrilling development marketplace for onshore wind, with clear carbon discount targets and supportive insurance policies, while the skilled administration workforce will complement our sector-leading capabilities completely. The challenge portfolio brings some wonderful property and can present an actual springboard for our growth plans in Europe throughout wind, photo voltaic, batteries and hydrogen.”
Stephen Wheeler Managing Director of SSE Renewables
The addition of the SGRE platform is very complementary to SSE’s strategic aims and is in keeping with the SSE Group’s Internet Zero Acceleration Program (NZAP), which outlines absolutely funded £12.5bn capital funding plans to 2026 alongside bold 2031 targets, aligned with 1.5 diploma science based mostly targets.
SSE Renewables is aiming to have round 500MW of renewable initiatives from the SGRE portfolio operational by March 2026, with an additional no less than 500MW in development. This may contribute to the NZAP targets of:
4GW of internet additions over 5 years, doubling put in renewables capability to 8GW (internet) by 2026;sustaining a pipeline of no less than 15GW of renewables growth initiatives;focusing on supply of no less than 1GW internet capability additions per yr throughout the second half of the last decade ; Therebytrebling put in renewables capability to over 13GW (internet) and in flip goal a fivefold improve in renewables output to 50TWh yearly by 2031.
This acquisition strengthens SSE Renewables’ place as a number one renewables developer. The corporate is presently constructing extra offshore wind capability than every other firm on the earth: it’s main the development of the world’s largest wind farm, Dogger Financial institution (3,600MW, SSE share 40%) and the world’s deepest mounted backside offshore wind farm, Seagreen (1,075MW, SSE share 49%). Moreover, it’s presently constructing the wholly owned Viking onshore wind farm (443MW) in Shetland, anticipated to be one of many UK’s best wind farms on completion.
SSE Renewables’ growth pipeline contains one of many world’s largest offshore wind alternatives, Berwick Financial institution (4.1GW) in addition to a floating wind website of as much as 2.6GW (SSE share 40%) in Scotland secured within the ScotWind leasing spherical. On the worldwide entrance, SSE Renewables lately entered the Japanese offshore wind market by way of the formation of SSE Pacifico and is actively exploring alternatives within the US and Northern Europe.
* The ultimate worth will likely be topic to customary changes for stage of working capital and internet debt.