SSE to take full control of Seagreen offshore wind JV

UK utility SSE Plc (LON:SSE) said today it is acquiring the 50% it did not own in its joint venture (JV) partnership Seagreen Wind Energy Ltd and its 1.5 GW of under-development offshore wind projects.

SSE has purchased the 50% stake from its partner Fluor Ltd for GBP 118 million (USD 155m/EUR 132m). The transaction is subject to clearance by Crown Estate Scotland. SSE noted it will be reviewing the future ownership structure of the entity further in the coming months.

Under the Seagreen Phase 1, the partners have proposed two offshore wind projects in the outer Firth of Forth and Firth of Tay in Scotland -- Seagreen Alpha and Seagreen Bravo. The schemes, which were originally consented in 2014, are currently undergoing an optimisation design process so as to include fewer but larger wind turbines.

According to the latest proposal, which was filed for approval last week, the maximum capacity of the wind parks will be lifted to 1.5 GW from 1.05 GW, while the number of turbines for the combined development will be cut to 120 from 150 in the originally consented joint project. The application also includes a monopile foundation option.

“The Seagreen acquisition aligns with SSE’s ambition to create value from owning, operating and developing clean energy assets and infrastructure,” Martin Pibworth, SSE’s wholesale director.

Meanwhile, the utility confirmed it will remain focused on preparing to enter the Seagreen projects in the next Contracts for Difference (CfD) auction in the UK in May next year. It also noted it will seek further opportunities for additional projects under The Crown Estate and Crown Estate Scotland leasing processes.

This latest purchase expands SSE's total offshore wind portfolio to around 4 GW.

(GBP 1.0 = USD 1.314/EUR 1.117)

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