Siemens Gamesa has entered into an agreement with SSE to sell south European renewables development assets for a total cash consideration of €580 million. This sale includes a pipeline of onshore wind projects with a total capacity of 3.9 GW in various stages of development in Spain, France, Italy and Greece, with the possibility to develop up to 1 GW of co-located photovoltaic projects.
A team of around 40 persons from Siemens Gamesa, with strong sector experience in those countries, will be integrated in SSE.
As part of the transaction, SSE Renewables will have the opportunity to partner with Siemens Gamesa on the provision of turbines and associated long-term maintenance services for a portion of wind farms installed and operated by SSE in the next few years coming from this sale.
“This announcement demonstrates Siemens Gamesa’s capacity to optimize its portfolio of assets and maximize value,” says Jochen Eickholt, CEO of Siemens Gamesa. “Our South European project development team has built an excellent and unique portfolio of wind projects in four countries over the years; as a result, there has been very strong market interest for this portfolio and we are confident SSE will be the right partner to develop these projects and integrate our employees.”
The closing of this transaction is expected to take place during Siemens Gamesa’s fiscal year 2022. BofA Securities and CMS Albiñana&Suárez de Lezo acted as financial and legal advisors, respectively, to SGRE on the transaction.
“We are delighted to boost the delivery of SSE’s Net Zero Acceleration Programme by expanding our existing renewables business into Southern Europe through this acquisition,” states Stephen Wheeler, Managing Director of SSE Renewables. “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. 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.”
