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April 20, 2022

SSE Renewables to acquire SGRE’s European onshore wind platform

The $627m deal adds nearly 3.9GW of projects across Spain, France, Italy and Greece to SSE Renewables’ portfolio.

UK-based company SSE Renewables has reached an agreement with Siemens Gamesa Renewable Energy (SGRE) to acquire its European renewable energy development platform for $627m (€580m).

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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
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As part of the deal, SSE Renewables will acquire SGRE’s 3.9GW onshore wind portfolio in Spain, France, Greece and Italy.

The portfolio also has a scope for up to 1GW of additional co-located solar development opportunities.

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.”

With this deal, SSE Renewables will foray into Southern Europe’s renewable energy market.

The UK-based firm also intends to retain 40 staff members of the acquired business.

SSE Renewables has already established its presence in the UK and Irish markets, where it has 4GW of renewable assets, which includes around 2GW of onshore wind capacity.

It also has nearly 11GW across onshore wind, offshore wind and hydro projects in the pipeline.

Most of the projects in the SGRE portfolio are currently in the initial development phase, and SSE Renewables intends to bring online around 500MW of renewable projects in SGRE’s portfolio by March 2026.

It also aims at pushing at least 500MW into the construction phase.

Completion of the deal is expected in September 2022, subject to regulatory approvals and receipt of relevant foreign direct investment.

Last September, SSE Renewables decided to combine its two proposed offshore wind farms in Scotland. 

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Free Report
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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

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