REG - SSE Plc - SSE & partners advance 2GW offshore windfarm in NL

SSEAnnouncement

09/07/2024 07:00

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RNS Number : 5874V  SSE PLC  09 July 2024

 

SSE plc

 

SSE and partners move forward with development of 2GW offshore wind farm in
the Netherlands

 

 

9 July 2024: SSE with its joint venture partner APG (acting on behalf of Dutch
pension fund ABP) has today confirmed it is moving forward with the 2GW Alpha
offshore wind tender site (SSE share 50%) in the IJmuiden Ver Wind Farm Zone
in the Netherlands. Subject to reaching a Final Investment Decision (FID),
expected by late 2025, the wind farm would be commissioned by the end of the
decade.

 

Last month the Dutch Government awarded the SSE-APG consortium ('Noordzeker')
the rights to a pre-developed and fully consented offshore wind site in the
Dutch North Sea. The consortium will enter into the 40-year lease period for
the Alpha site for an annual payment of around EUR 1 million. As part of the
lease conditions, a performance bond has also been posted which is linked to
on-time delivery of the wind farm. The consortium will reimburse the EUR 20
million cost for the environmental impact assessment and the offshore site
characterization studies which were completed by Dutch authorities ahead of
the tender. The consortium will use the data from the site studies to further
progress the final design of the wind farm.

 

In addition to being fully consented, the awarded site also benefits from a
confirmed grid connection to the Netherlands' national grid which will be
(separately) developed and constructed by Dutch grid operator, TenneT.

 

The IJmuiden Ver tender marks SSE's first seabed award in the established
Dutch offshore wind market where the company sees significant and sustainable
growth potential. The Netherlands represents a complementary and adjacent
market to SSE's existing North Sea offshore projects, with an established
supply chain and a mature corporate power purchase agreement (CPPA) market.
The Dutch Government has set a target of 21GW of offshore wind to be tendered
by 2032, and a 50GW target by 2040.

 

The 2GW project (SSE share 1GW) grows SSE's secured offshore wind pipeline to
9.3GW and further progresses SSE's ambition to grow its offshore wind business
into carefully selected markets, where it believes attractive returns above
hurdle rates can be achieved.

 

Stephen Wheeler, Managing Director, SSE Renewables, said:

"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. 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."

 

IJmuiden Ver Alpha will be located about 62 kilometres off the Dutch coast off
the port town of IJmuiden and will have an installed capacity of around 2GW,
enough to meet around 7% of the current Dutch electricity demand. The Dutch
Government's competitive IJmuiden Ver Wind Farm Zone tender was largely based
on a 'points-based' qualitative assessment. Bid submissions for the 2GW Alpha
site were invited to put forward proposals focused on making a positive
contribution to nature. The Noordzeker consortium proposed an innovative and
diverse set of measures that would reduce and mitigate ecological impacts
while increasing biodiversity. This ecologically sensitive approach to
positively contributing to the Dutch North Sea's environment could help ensure
offshore wind is developed in harmony with the surrounding ecosystem, while
positively contributing to the Netherland's decarbonization and security of
supply.

 

Enquiries

 Investors and Analysts  ir@sse.com     +44 (0)345 0760 530
 Media                   media@sse.com  +44 (0)345 0760 530

 

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