SSE, APG progress development of 2-GW Dutch offshore wind project

British utility SSE PLC (LON:SSE) on Tuesday confirmed plans to advance, alongside joint venture partner APG, the 2-GW Alpha offshore wind project off the west coast of the Netherlands.

The proposed station is expected to go live in the North Sea by the end of the decade, subject to reaching a final investment decision (FID) which is anticipated by late 2025, SSE noted in the statement.

A consortium comprising SSE, Dutch pension fund ABP and the latter’s asset manager APG was awarded a permit to build and operate a station in the IJmuiden Ver Wind Farm Zone as part of a 4-GW auction held by Dutch authorities earlier this year.

The three partners will enter into a 40-year lease period for the Alpha site for an annual payment of around EUR 1 million (USD 1.08m). The terms also envisage a performance bond linked to on-time delivery of the wind farm. In addition, EUR 20 million will reimbursed to the Dutch authorities to cover the cost of the already completed environmental impact assessment and the offshore site characterisation studies.

IJmuiden Ver Alpha will be located about 62 kilometres (38.5 mi) off the port town of Ijmuiden. Its planned output is equivalent to around 7% of the current Dutch electricity demand.

The scheme is part of the Dutch government’s target of tendering 21 GW of offshore wind capacity by 2032, and 50 GW by 2040.

(EUR 1.0 = USD 1.084)

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