SSE Renewables has agreed to buy a portfolio of nearly 4 gigawatts of European onshore wind projects from Siemens Gamesa Renewable Energy (SGRE) for €580 million (£483m).
The deal, covering a series of SGRE assets in development across southern Europe, extends to roughly 3.9GW of onshore wind projects and includes scope for up to 1GW of additional co-located solar development opportunities.
Around half of the capacity is located in Spain, with the remainder spread across France, Italy and Greece.
The acquisition marks SSE Renewables’ entry into southern Europe, where it will now work to bring around 500MW of projects from the SGRE portfolio online by March 2026, and a further 500MW under construction, at a minimum.
The deal will also see the company take on a team of around 40 SGRE employees, it said.
The transaction is likely to complete by the end of September 2022, subject to regulatory approval.
As the renewable energy arm of utility SSE, the company already has a significant footprint in the UK and Ireland, where it owns and operates 4GW of renewable assets, alongside a pipeline of nearly 11GW of pipeline capacity spanning onshore wind, offshore wind and hydropower.
It is also working on the world’s largest offshore wind farm, the 3.6GW Dogger Bank scheme off the Yorkshire coast, and the world’s deepest fixed-bottom offshore wind farm, the 1.1GW Seagreen project, off the coast of Angus, as part of a £12.5bn capital investment plan running to 2026.
SSE Renewables managing director Stephen Wheeler said the group was “delighted” with the acquisition, which would help boost its net zero plans.
“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,” he added.
“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.”
Meanwhile, SGRE noted that the deal will see it partner with SSE to provide turbines and associated long-term maintenance services for a portion of wind farms built by the developer over the next few years following the sale.
It marks the first major divestment by newly installed SGRE CEO Jochen Eickholt, who now leads a cash-raising drive after a series of profit warnings led to the exit of his predecessor.
Mr Eickholt said there had been “very strong market interest” in the portfolio, adding that: “We are confident SSE will be the right partner to develop these projects and integrate our employees.”
The embattled company reported a 20% year-on-year drop in revenue for October-December, having already cut its financial outlook three times in nine months, blaming increased supply chain costs and the rising cost of its new generation of turbines.
In a separate statement on Tuesday, SGRE announced preliminary quarterly results and warned it had put its full-year 2022 guidance under review, with performance expected at the “low end” of its forecast range.
It expects to publish half-year results on 5 May.