SSE & partners advance 2GW offshore windfarm in NL

SSE PLC

09 July 2024

 

SSE plc

SSE and partners move forward with development of 2GW offshore wind farm in the Netherlands

9 July 2024: SSE with its joint venture partner APG (acting on behalf of Dutch pension fund ABP) has today confirmed it is moving forward with the 2GW Alpha offshore wind tender site (SSE share 50%) in the IJmuiden Ver Wind Farm Zone in the Netherlands. Subject to reaching a Final Investment Decision (FID), expected by late 2025, the wind farm would be commissioned by the end of the decade.

Last month the Dutch Government awarded the SSE-APG consortium ('Noordzeker') the rights to a pre-developed and fully consented offshore wind site in the Dutch North Sea. The consortium will enter into the 40-year lease period for the Alpha site for an annual payment of around EUR 1 million. As part of the lease conditions, a performance bond has also been posted which is linked to on-time delivery of the wind farm. The consortium will reimburse the EUR 20 million cost for the environmental impact assessment and the offshore site characterization studies which were completed by Dutch authorities ahead of the tender. The consortium will use the data from the site studies to further progress the final design of the wind farm.

In addition to being fully consented, the awarded site also benefits from a confirmed grid connection to the Netherlands' national grid which will be (separately) developed and constructed by Dutch grid operator, TenneT.

The IJmuiden Ver tender marks SSE's first seabed award in the established Dutch offshore wind market where the company sees significant and sustainable growth potential. The Netherlands represents a complementary and adjacent market to SSE's existing North Sea offshore projects, with an established supply chain and a mature corporate power purchase agreement (CPPA) market. The Dutch Government has set a target of 21GW of offshore wind to be tendered by 2032, and a 50GW target by 2040.

The 2GW project (SSE share 1GW) grows SSE's secured offshore wind pipeline to 9.3GW and further progresses SSE's ambition to grow its offshore wind business into carefully selected markets, where it believes attractive returns above hurdle rates can be achieved.

Stephen Wheeler, Managing Director, SSE Renewables, said:

"We are pleased to be progressing development of the 2GW Alpha site in the IJmuiden Ver Wind Farm Zone in the Netherlands with our consortium partners APG and ABP. Our successful bid is testament to the work the consortium and its partners have undertaken to put forward a compelling set of proposals to sensitively develop our proposed offshore wind project in a manner which will positively contribute to the marine environment while delivering a cleaner and more secure energy system for the Netherlands. We now look forward to collaborating with our consortium partners, Dutch authorities, supply chains and other stakeholders as we progress the project."

IJmuiden Ver Alpha will be located about 62 kilometres off the Dutch coast off the port town of IJmuiden and will have an installed capacity of around 2GW, enough to meet around 7% of the current Dutch electricity demand. The Dutch Government's competitive IJmuiden Ver Wind Farm Zone tender was largely based on a 'points-based' qualitative assessment. Bid submissions for the 2GW Alpha site were invited to put forward proposals focused on making a positive contribution to nature. The Noordzeker consortium proposed an innovative and diverse set of measures that would reduce and mitigate ecological impacts while increasing biodiversity. This ecologically sensitive approach to positively contributing to the Dutch North Sea's environment could help ensure offshore wind is developed in harmony with the surrounding ecosystem, while positively contributing to the Netherland's decarbonization and security of supply.

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