SSE advancing development of 2GW Dutch offshore wind farm

9th Jul 2024 07:16

(Sharecast News) - SSE announced on Tuesday that it is advancing the development of a 2GW offshore wind farm in the Netherlands alongside its partner, APG.

The FTSE 100 electricity giant said the project, dubbed 'Alpha', would be located in the IJmuiden Ver Wind Farm Zone, and was expected to reach final investment decision (FID) stage by late 2025, with commissioning expected by the end of the decade.

SSE holds a 50% share in the project.

The SSE-APG consortium, known as 'Noordzeker,' was awarded the rights to the fully-consented offshore wind site last month by the Dutch government.

SSE said the consortium would enter into a 40-year lease for the Alpha site, paying around €1m annually.

A performance bond linked to the timely delivery of the wind farm was also part of the lease conditions.

Additionally, the consortium would reimburse the €20m cost for the environmental impact assessment and site characterization studies previously conducted by Dutch authorities.

The awarded site includes a confirmed grid connection to the Netherlands' national grid, which would be developed and constructed by Dutch grid operator TenneT.

It marked SSE's first seabed award in the Dutch offshore wind market, where the company said it sees significant growth potential.

The Netherlands was seen as a complementary market to SSE's existing North Sea projects, with a well-established supply chain and a mature corporate power purchase agreement market.

SSE said the 2GW project, with it holding a 1GW share, would expand its secured offshore wind pipeline to 9.3GW.

It aligns with its strategy to grow its offshore wind business in selected markets that promise attractive returns.

The Dutch government had set ambitious offshore wind targets of 21GW by 2032 and 50GW by 2040, highlighting the sector's growth potential.

"We are pleased to be progressing development of the 2GW Alpha site in the IJmuiden Ver Wind Farm Zone in the Netherlands with our consortium partners APG and ABP," said Stephen Wheeler, managing director of SSE Renewables.

"Our successful bid is testament to the work the consortium and its partners have undertaken to put forward a compelling set of proposals to sensitively develop our proposed offshore wind project in a manner which will positively contribute to the marine environment while delivering a cleaner and more secure energy system for the Netherlands.

"We now look forward to collaborating with our consortium partners, Dutch authorities, supply chains and other stakeholders as we progress the project."

At 0824 BST, shares in SSE were up 0.77% at 1,843p.

Reporting by Josh White for Sharecast.com.