SSE Renewables has agreed a €580m deal with Siemens Gamesa to acquire the turbine company’s almost 4GW European onshore wind development platform.
The acquisition marks the UK developer’s entry into southern Europe, with the 3.9GW pipeline located in Spain, France, Italy and Greece. Most of the projects are in early-stage development.
As part of the transaction, Siemens Gamesa said SSE will have the “opportunity to partner…on the provision of turbines and associated long-term maintenance services for a portion of wind farms installed…in the next few years”.
SSE said there is scope for up to 1GW of additional co-located solar development opportunities.
The developer will also take on a team of around 40 employees as part of the deal.
The transaction is likely to complete by the end of September 2022, subject to receipt of relevant foreign direct investment and regulatory approvals.
SSE added the platform, alongside the experienced development teams, will provide an “excellent base for continued sourcing of development opportunities” across onshore and offshore wind, solar, batteries and hydrogen.
It also presents opportunities to enter wider European markets, the developer added.
SSE Renewables managing director Stephen Wheeler said: “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.”
Siemens Gamesa chief executive Jochen Eickholt added: “Today’s announcement demonstrates Siemens Gamesa’s capacity to optimize its portfolio of assets and maximize value.
“Our South European project development team has built an excellent and unique portfolio of wind projects in four countries over the years; as a result, there has been very strong market interest for this portfolio and we are confident SSE will be the right partner to develop these projects and integrate our employees.”