SSE PLC SALE OF SSE'S STAKE IN WALNEY OFFSHORE WIND FARM (6735X)
September 01 2020 - 6:13AM
UK Regulatory
TIDMSSE
RNS Number : 6735X
SSE PLC
01 September 2020
SSE plc
SALE OF SSE'S STAKE IN WALNEY OFFSHORE WIND FARM TO
GREENCOAT
In line with its stated intention in June 2020 to dispose of
GBP2bn of assets by Autumn 2021, SSE has agreed to sell its 25.1%
non-operating stake in Walney Offshore Wind Farm to Greencoat UK
Wind Plc ("UKW"), subject to a completion process which it expects
will take place shortly . The stake equates to 92MW (megawatts) of
capacity and the total consideration is GBP350m.
The sale of Walney marks the first stage of SSE's disposal
plans. As previously announced, a significant part of the disposal
programme will be non-core assets. As essentially a financial
investment, Walney clearly falls into this category. The
transaction is indicative of the quality and optionality contained
in SSE's portfolio of projects and assets, demonstrating its
ability to deliver value through disposals.
Following the disposal of SSE's stake in Walney, SSE's renewable
generation capacity will be around 3.9GW (gigawatts). SSE's current
offshore wind portfolio comprises Greater Gabbard Offshore Wind
Farm (504MW, SSE share 50%) and Beatrice Offshore Wind Farm (588MW,
SSE share 40%), both of which it operates on behalf of its joint
venture partners.
Securing value and cash proceeds from timely disposals will
support SSE's GBP7.5bn five-year capital expenditure plans to
invest in core strategic assets that will support the ongoing
transition to net zero emissions.
As part of this, SSE's renewable capacity is set to grow with
investments in: Seagreen (1,075MW, SSE share 49%) and Dogger Bank
offshore wind farms (3,600MW, SSE share 50%) offshore wind farms,
as well as the Viking onshore wind farm on Shetland (443MW, SSE
share 100%). SSE is leading on the development and construction of
all three projects.
SSE will update on further disposals in due course.
Gregor Alexander, Finance Director , said: "Walney has been a
good financial investment for SSE but we see it as a non-core asset
as we are not the principal operator. This transaction is a key
first step in our GBP2bn asset disposal programme announced in June
and will enable SSE to build out its GBP7.5bn low carbon investment
programme over the next five years, helping the UK to reach net
zero emissions, stimulating a green economic recovery and creating
value for shareholders and society".
Additional Information
-- Walney is a 367MW offshore wind farm located off the west
coast of the United Kingdom, approximately 15km from the coastline
of Walney Island.
-- Ownership currently comprises: Orsted (50.1%), PGGM (24.8%); and SSE Renewables (25.1%).
-- The wind farm was completed in two phases, Walney 1, which
entered commercial operations in July 2011, followed by Walney 2 in
June 2012. Walney consists of 102, 3.6MW Siemens Gamesa turbines.
Its average load factor is around 45%.
-- Walney earns 2 Renewables Obligation Certificates per MWh,
which run until 2031 and 2032 for Walney 1 and 2, respectively.
-- In the financial year 2019/20, Walney's contribution to SSE's
EBIT was GBP20.8m and to EPS was 1.8 pence.
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