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Siemens Gamesa and SSE have reached an agreement to sell South European renewables assets for a cash consideration totaling EUR 580 million.
The sale includes a pipeline consisting of onshore wind projects, totaling 3.9 GW, at various stages of development in Spain and Italy, as well as the possibility of developing up to 1GW of co-located photovoltaic plants.
As part of the agreement, a team of approximately 40 people from Siemens Gamesa with extensive sector experience in these countries will be integrated into SSE.
SSE Renewables, a part of this transaction, will be able to partner with Siemens Gamesa for the provision of turbines as well as long-term maintenance services in a portion SSE’s wind farms. This sale will result in SSE installing and operating these wind farms over the next few years.
“Today’s announcement shows Siemens Gamesa’s ability to maximize its assets and maximize its value”. Jochen Eickholt CEO of Siemens Gamesa, says that the South European project development team has developed a unique portfolio of wind power projects in four countries. This has resulted in strong market interest and we are confident SSE can be the right partner to develop these assets and integrate our employees.
We are thrilled to increase the delivery of SSE’s Net Zero Acceleration Programme through this acquisition. Mainland Europe is a promising growth market for offshore wind. It has clear carbon reduction targets, supportive policies, and the skilled management team will perfectly complement our sector-leading capabilities. Stephen Wheeler, SSE Renewables’ Managing Director, states that the project portfolio contains many excellent assets and will be a great springboard for our European expansion plans across wind, solar and batteries.
This transaction will close during Siemens Gamesa’s fiscal years 2022 and 2023. Closing of transaction is subject to the customary regulatory approvals by the competent authorities. The purchase price consideration may be subject to any customary post-closing adjustments.
CMS Albinana&Suarez de Lezo, and BofA Securities acted as legal and financial advisors to SGRE for the transaction.