SSE Renewables and APG join forces for dutch Offshore Wind Tenders

SSE Renewables and APG, acting on behalf of Dutch pension fund ABP, aim for development of a large-scale offshore wind energy project in the Dutch North Sea. Both companies view the Netherlands as a leading market for offshore wind development, supported by ambitious targets and a strong focus on innovation.

The IJmuiden Ver tenders are for the award of permits to develop the four individual 1GW sites within the IJmuiden Ver Zone located approximately 62km off the Dutch coast. The four tenders will have a clear focus on ecological protection and enhancement in the North Sea as well as on optimal integration into the Dutch energy system. Furthermore, Circularity and International Responsible Business Conduct (IRBC) are key priorities for the Dutch government. Criteria and other elements of the procedures are expected to be published in early 2023, with the application window expected to be opened in Q4 2023.

Community involvement

The 50/50 joint venture combines SSE Renewables’ experience in developing, constructing and operating offshore wind farms with APG’s substantial investment experience in renewables and energy transition as well as its strong roots in Dutch society. Both companies have a long tradition of community involvement in their renewable energy development, as well as a track record of deploying innovative technology solutions to their projects. The companies hope to bring their solution-oriented and innovative approaches to achieve important societal goals in the Netherlands and see these tenders as a way to contribute to the renewables ambitions of the Dutch government, thus securing energy supply for Dutch citizens.

ABP is the Netherlands’ largest pension fund and is already invested in onshore and offshore wind energy. Last month, ABP announced its intention to develop offshore wind energy sites in the Netherlands. To realise this, it set up the ‘Noordzeker coalition’ to contribute to plans of the Dutch government to generate approximately 21GW of energy - approximately 75% of current electricity consumption - from offshore wind by 2030. Through Noordzeker, ABP is seeking collaboration with knowledge institutes, industry, societal organizations and national, regional and local governments. APG, in the capacity of ABP’s asset manager, will be responsible for the execution of the Noordzeker coalition goals, in which the consortium (APG – SSE Renewables) will hold a vital role.

Stephen Wheeler Managing Director, SSE Renewables, said: "I am delighted that we are partnering with APG through Noordzeker, on the upcoming IJmuiden Ver offshore wind farm zone tenders, given their significant operating experience and their wider investments in the Netherlands. Both partners are experienced innovators and committed to ensuring that offshore wind is developed in harmony with the surrounding ecosystem. We look forward to collaborating with APG, Dutch authorities, the industry, NGO’s and other parties concerned – to help secure energy supply for the Netherlands in these turbulent times, drive innovations benefitting energy systems integration, and to continue putting offshore wind at the forefront of fighting climate change."

Peter Branner Chief Investment Officer APG, added: "We are very excited to partner with SSE Renewables for the IJmuiden Ver tenders next year. Their experience and expertise in participating in these tenders, constructing the assets and operating a very sizable, worldwide portfolio of offshore wind farms make them the ideal partner for APG. The consortium partners are committed to invest a large amount of capital to support the Dutch energy transition, with particular focus on ecological innovation and integration into the broader energy system. The partnership is the first step of many in realizing ABP’s ambitions through its Noordzeker initiative."

Background

The Dutch government has announced that it will award permits for IJmuiden Ver through a comparative assessment with financial bid procedure. All four IJmuiden Ver tenders will have a maximum bid price, the level of which is yet to be confirmed. In addition to this, innovations regarding Ecology, System Integration, Circularity and International Responsible Business Conduct (IRBC) will be crucial criteria in the tender. The consortium is a long-time engagement in which APG and SSE Renewables will innovate for the benefit of securing energy supply for the Netherlands in harmony with the North Sea’s precious ecosystem.