ENERGY giant SSE has taken full ownership of Seagreen Wind Energy as it continues its push into renewables.
Seagreen was established to develop offshore wind projects in the outer Firth of Forth and Firth of Tay
SSE, which already held 50% of Seagreen, has acquired the other half of the offshore wind joint venture from multinational Fluor for £118 million.
The Perth-based firm said that Seagreen projects had the potential to provide a “significant contribution” to Scotland’s renewable energy generation capacity and help to meet Scotland and the UK’s ambitious renewable energy targets.
Increasing its share in Seagreen is in line with SSE’s offshore wind ambitions and with the group’s broader strategy to “create value for shareholders and society from developing, owning and operating energy and related infrastructure and services in a sustainable way, with regulated energy networks and renewable energy at its core”.
Seagreen Phase 1, consisting of the “Alpha” and “Bravo” projects, is currently seeking amendments to existing consent to take advantage of the advances in offshore wind turbine technology since the original consent was granted back in 2014.
The new proposal would see fewer, larger, higher-capacity wind turbines and the inclusion of monopiles as a foundation option. A maximum of 120 turbines would be developed across the Alpha and Bravo areas with a potential capacity of approximately 1,500MW.
SSE said this would provide energy to supply enough power for at least 670,000 homes.
Martin Pibworth, SSE’s wholesale director, said: “The Seagreen acquisition aligns with SSE’s ambition to create value from owning, operating and developing clean energy assets and infrastructure.
“We are looking forward to taking full ownership of Seagreen as we progress through this critical phase towards the contracts for difference auction, expected in May 2019.
“SSE’s expertise in the development, construction and operation of offshore wind will be an asset to Seagreen, and we will review the ownership structure in due course.”
The Seagreen acquisition marks another milestone in SSE’s offshore wind journey. Active in the offshore wind industry since 2004, SSE has established itself as a leading UK player, with a 25% share in Walney offshore wind farm and a 50% share in Greater Gabbard offshore wind farm, which is operated by SSE.
SSE is currently leading the construction and operation of the Beatrice offshore wind farm in the outer Moray Firth where 20 of the 84 turbines are installed – SSE will also operate the wind farm when construction completes in 2019.
Alongside Seagreen, SSE is also developing projects at Dogger Bank and holds a development option at Arklow Bank in Ireland, bringing its total share of consented development pipeline to over 3.3GW.
SSE is exploring opportunities to secure further seabed through The Crown Estate and Crown Estate Scotland leasing processes.
It said it “remains focused” on preparing the Seagreen Phase 1 projects in readiness for the next UK contracts for difference auction. In July, the UK Energy Minister Claire Perry announced the next auction would be open by May 2019, with subsequent auctions around every two years, and confirmed £557m of budget will be available to fund projects.
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