SSE Renewables has agreed to sell its 25.1% non-operating 92MW stake in Walney Offshore Wind Farm to Greencoat UK Wind for a total consideration of £350m. The sale is subject to a completion process which it is expected will take place shortly, and is in line with parent company SSE’s stated intention in June 2020 to dispose of £2bn of assets by Autumn 2021.
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.
Gregor Alexander, Finance Director of SSE plc, 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 £2bn asset disposal programme announced in June and will enable SSE to build out its £7.5bn 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”.
Following the disposal of the stake in Walney, SSE Renewables' generation capacity will be around 3.9GW (gigawatts). The company’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 SSE Renewables operates on behalf of its joint venture partners.
Securing value and cash proceeds from timely disposals will support SSE’s £7.5bn 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 Renewables' capacity is set to grow with investments in: Seagreen (1,075MW, SSE Renewables share 49%) and Dogger Bank offshore wind farms (3,600MW, SSE Renewables share 50%), as well as the Viking onshore wind farm on Shetland (443MW, SSE Renewables share 100%). SSE Renewables is leading on the development and construction of all three projects.