SSE Renewables has closed the agreement to sell a 10% interest in Dogger Bank A (1.2 GW) and Dogger Bank B (1.2 GW) assets to Eni.
As part of this transaction Eni has also completed the agreement to purchase a 10% interest in the Dogger Bank A and Dogger Bank B assets from project partner Equinor on the same terms.
Eni entered the Dogger Bank A and B assets effective from financial close of project financing which was reached on 25 November 2020. The total consideration received at closing is GBP £206.4million.
The A and B phases of the Dogger Bank Wind Farm reached financial close at competitive terms underlining the attractiveness of the UK offshore wind assets and the confidence in the joint venture.
The third phase of the wind farm, Dogger Bank C (1.2 GW), is being developed under a different timeline. There is no change to the ownership of this phase, in which Equinor and SSE each have a 50% stake.
SSE’s approach to selling down stakes to retain typically 30-40% equity in a project and working with equity partners during construction and/or operation brings a number of benefits. Partners can be introduced at a variety of stages of the project lifecycle, depending on their risk appetites. It ensures SSE focuses its investment where it can secure developer premiums and realise value at the earliest opportunity. It also reduces overall risk and financial exposure on large-scale projects and avoids a large increase in net debt that is not earning.
Dogger Bank Wind Farm is the largest of SSE Renewables’ projects currently in construction. SSE Renewables is currently also leading the construction of the Seagreen offshore wind farm (1,075MW, SSE share 49%), which will be Scotland’s largest on completion, and the wholly-owned Viking wind farm (443MW), the UK’s most productive onshore wind farm. Together these flagship renewable energy projects are driving SSE Renewables’ significant growth to 2025 and demonstrate the quality and value of its development portfolio.