SSE Renewables has signed an agreement with Japanese renewable energy developer, Pacifico Energy, to create a joint ownership company that will pursue offshore wind energy development in Japan.
The creation of the joint ownership company involves the acquisition by SSE Renewables of an 80% stake in an offshore wind development platform from Pacifico Energy and is aligned with SSE Renewables’ expansion strategy.
Japan has clear offshore wind targets of 10GW by 2030 and 30-45GW by 2040 as the country seeks to decarbonize and achieve greater energy independence. The targets are backed by a commitment to run regular offshore wind auctions for support.
The transaction will see the acquisition of a number of fixed and floating early-stage offshore wind development projects spread across Japanese waters, with the potential to deliver multiple GWs.
The two most advanced projects have secured grid access and advanced local stakeholder engagement has been undertaken.
The new entity will progress its 10GW portfolio of early-stage development opportunities, with the most advanced aiming to enter bid rounds before or in the mid-2020s.
Jim Smith, managing director of SSE Renewables, said: “We want to help realize 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 realize the benefits of the offshore wind industry. 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.”
SSE Renewables has a 7GW offshore wind pipeline across UK and Ireland and has a renewable output target of 30TWh a year by 2030.
Japan now joins Spain, Portugal, Denmark, and Poland as being markets where SSE Renewables is actively 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.