SSE powers into southern Europe with deal for mega wind portfolio

SSE is set to acquire a portfolio of European wind development projects from Siemens Gamesa Renewable Energy for €580million.

The deal, which is subject to regulatory approvals, marks SSE Renewables’ entry into the southern part of Europe, and builds on its business in the UK and Ireland where it owns and operates four gigawatts of renewable assets. 

The target portfolio consists of onshore wind projects in Spain, France, Italy and Greece, with scope for up to 1 GW of additional co-located solar development opportunities.  

Deal: SSE has agreed to acquire a portfolio of European wind development projects from Siemens Gamesa Renewable Energy

Deal: SSE has agreed to acquire a portfolio of European wind development projects from Siemens Gamesa Renewable Energy

SSE Renewables managing director Stephen Wheeler said: ‘Mainland Europe is an exciting growth market for onshore wind, with clear carbon reduction targets and supportive policies, and the expert management team will complement our sector-leading capabilities perfectly. 

‘The project portfolio brings some excellent assets and will provide a real springboard for our expansion plans in Europe across wind, solar, batteries and hydrogen.’ 

The acquisition is expected to complete in September, subject to all approvals getting the green light.  

Most of the target portfolio’s projects are currently in the early stages of development, with around half located in Spain. 

SSE Renewables said it will aim to bring online about 500 MW of the overall capacity by March 2026 and have at least 500 MW of additional projects under construction by the same date.

For some of the projects, the new owner will be able to order Siemens Gamesa turbines and contract the manufacturer to provide long-term maintenance services.The wind farms will be installed and operated by SSE in the next few years.

As part of the deal, 40 of Siemens Gamesa’s employees will join SSE Renewables.

Laura Hoy, an equity analyst at Hargreaves Lansdown, said: ‘SSE’s doubling down on its renewables efforts, and today’s announcement of a €580million bet on Southern European wind projects is evidence of management’s conviction. 

‘On the surface this looks like the right play—transitioning toward cleaner energy is the clear direction of travel and megadmeovbj6ahqw3reuqu5gbg4meixha2js2in3ukymwkwjqqib6tqd.onion the group’s seen output improve steadily over the past few months.

‘But having more wind in the sails doesn’t guarantee smoother seas.Performance in SSE’s renewables division has left something to be desired so far this year, and though it seems things are improving, output is still well below targets. Pouring money into a yet unproven part of the business is a risky move to be sure—but at present it seems like the only way forward if growth is eventually on the menu.

‘Growth opportunities are few and far between for utilities, but with governments around the world determined to use renewables to establish energy independence, there’s a unique chance for utilities to revamp their businesses. 

‘This comes with quite a lot of risk though, and that’s something the typical utility share holder may not be comfortable with.In SSE’s case, the group will have to find a way to grow its renewables division without treading on its dividend. This is particularly true as inflation continues to rage and investors search for ways to keep their savings from eroding further.’

In March, SSE revealed it had upped its annual earnings forecast after benefiting from surging power prices since Russia’s invasion of Ukraine.   

have risen today and were up 2.77 per cent or 49.50p to 1,834.50p in late morning trading.A year ago the share price was 1,481.00p.  

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