SSE Renewables to enter Japanese offshore wind market
08:00, 29 September 2021
SSE Renewables, a subsidiary of SSE plc, has signed an agreement with Pacifico Energy, which will see it enter the Japanese offshore wind energy market.
The creation of the joint ownership company involves the acquisition by SSE Renewables of an 80% interest in an offshore wind development platform from Pacifico Energy and its affiliates for $208m, of which $30m is deferred consideration subject to a few conditions.
Japan has offshore wind targets of 10GW by 2030 and 30-45GW by 2040 as the country seeks to decarbonise and achieve greater energy independence. The targets are backed by a commitment to run regular offshore wind auctions for support.
The agreement includes the acquisition of several early-stage offshore wind development projects spread across Japanese waters, with the potential to progress to deliver multiple gigawatts.
Renewable output target
At 7GW, SSE Renewables has the largest offshore wind pipeline across the UK and Ireland. It has a renewable output target of 30TWh a year by 2030, which it expects to exceed, and aspires to reach a run rate of at least 1GW of new assets a year during the second half of the decade.
Japan now joins Spain, Portugal, Denmark and Poland as markets where SSE Renewables is looking to develop offshore wind projects and this acquisition could lead to further development options in the East Asian market, which is expected to deploy up to 140GW of offshore wind by 2050.
Commenting on the agreement with Pacifico Energy, Jim Smith, managing director of SSE Renewables, said: “We want to help realise Japan’s renewables ambitions and be a significant part of their offshore wind plans during the decades ahead, and we’re looking forward to working with the new team, as well as with local communities and other stakeholders to realise the benefits of the offshore wind industry.”
He added: “This is an exciting period for SSE as it continues to grow and deliver its low-carbon electricity infrastructure strategy, including a trebling of our renewables output by 2030.”
The SSE stock price was largely unchanged in mid-morning London trading at £15.82 ($21.37).