Siemens Gamesa has entered into an agreement with SSE to sell renewables development assets in southern Europe for a total cash consideration of €580 million.
This sale includes a pipeline of onshore wind projects with a total capacity of 3.9 GW in various stages of development in Spain, France, Italy and Greece, with the possibility to develop up to 1GW of co-located photovoltaic projects. A team of around 40 personnel from Siemens Gamesa, with strong sector experience in those countries, will be integrated in SSE as part of the agreement.
As part of the transaction, SSE Renewables will have the opportunity to partner with Siemens Gamesa on the provision of turbines and associated long-term maintenance services for a portion of wind farms installed and operated by SSE in the next few years coming from this sale.
“We are delighted to boost the delivery of SSE’s Net Zero Acceleration Programme by expanding our existing renewables business into southern Europe through this acquisition. Mainland Europe is an exciting growth market for onshore wind, with clear carbon reduction targets and supportive policies, whilst 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,” commented Stephen Wheeler, md of SSE Renewables.
The closing of this transaction is expected to take place during Siemens Gamesa’s fiscal year 2022. Closing is subject to the customary regulatory approvals of the competent authorities.