SSE PLC (LSE:SSE) said it bought Southern European onshore wind platform Siemens Gamesa Renewable Energy SA (SGRE) to bolster its renewable assets and to help countries met their net-zero targets quicker.
The €580mln deal for the renewable energy development platform includes 3.9 gigawatt (GW) of onshore wind development projects across France, Italy, Greece and Spain.
“Mainland Europe is an exciting growth market for onshore wind, with clear carbon reduction targets and supportive policies, and the expert management team will complement our sector-leading capabilities perfectly,” Stephen Wheeler, SSE Renewables managing director, said.
There is also scope for a further 1GW of co-located solar development opportunities, SSE said, which will add to the company’s already owned 4GW of renewable assets and a secured pipeline of nearly 11GW across onshore and offshore wind and hydro projects.
It aims to have 500 megawatts (MW) from the SGRE portfolio operational by March 2026, with another 500MW in construction.
"We are delighted to boost the delivery of SSE's Net Zero Acceleration Programme (NZAP) by expanding our existing renewables business into Southern Europe through this acquisition,” Wheeler added.
The acquisition will contribute to its NZAP targets of doubling installed renewables to 8GW by 2026, maintaining a pipeline of 15GW of development projects and an extra 1GW net capacity per year during the second half of the decade.
SSE also intends to treble installed renewables capacity to over 13GW (net) and target a fivefold increase in renewables output to 50 terawatt-hours annually by 2031, it said.
The transaction, which should be completed by September-end and is subject to regulatory approvals and foreign direct investment receipts, will see SSE take on a further 40 employees.