SSE has agreed exit terms with 50:50 joint venture partner, RWE Innogy for its interest in the Galloper offshore wind farm project. SSE said that the transaction is in line with its wider focus on streamlining and simplifying its business, and following the conclusion of a strategic review of its offshore wind development portfolio in March 2014,
In March, SSE announced that it would not be progressing its stake in the Galloper offshore wind farm project beyond the development phase.Under the exit arrangements SSE will remain a 50% shareholder in the project until a Final Investment Decision (FID) is made but RWE Innogy has taken over responsibility for ongoing project decisions and funding. Upon FID being achieved SSE will exit on pre-agreed terms.Finlay McCutcheon, SSE's Director of Offshore Renewables stated:
The construction of Galloper has started with enabling works for the wind farm’s onshore substation near Sizewell in Suffolk, well underway.
"While we continue to support the Galloper offshore wind farm, SSE will not be progressing its interest in the project beyond the development phase. We have now agreed exit terms with our joint venture partner RWE Innogy which will allow Galloper to progress to a Final Investment Decision and also secure a route to value realisation for SSE."
Detailed design work on the Electrical Supply has begun with construction activity expected to begin in early 2015.
RWE has named Alstom and services provider Petrofac as its preferred electrical system supplier for the project.