SSE sells stake in Walney OWF to Greencoat

SSE has agreed to sell its non-operating stake of 25.1 percent in Walney offshore wind farm to Greencoat UK Wind (UKW), subject to a completion process that it expects to take place soon.

The stake is equal to a power of 92MW, and a gross valuation of £350 million.

The selling of Walney marks the first step of SSE’s disposal plans. As previously announced, a significant part of the disposal programme will be non-core assets. As a financial investment, Walney specifically falls into this group. The sale is representative of the efficiency and optionality of SSE’s portfolio of projects and properties, demonstrating its ability to generate value through disposal.

After the disposal of SSE’s stake in Walney, SSE’s renewable generation potential will be around 3.9 GW. SSE ‘s existing offshore wind portfolio includes Greater Gabbard offshore wind farm (504MW, SSE 50 percent) and Beatrice offshore wind farm (588MW, SSE 40 percent), both of which work on behalf of its joint venture partners.

Securing value and cash proceeds from timely sales would finance SSE’s €7.5 billion five-year capital investment plans to invest in key strategic assets that will facilitate the ongoing transition to net zero emissions.

As part of this, SSE’s renewable capacity is expected to expand with investments in: Seagreen (1,075MW, SSE share 49 percent) and Dogger Bank offshore wind farms (3,600MW, SSE share 50 percent) as well as the Viking offshore wind farm in Shetland (443MW, SSE share 100 percent).

SSE is leading the development and construction of all three projects.

“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.”

Gregor Alexander, finance director SSE.