Dong buys SSE holding in 1GW Dutch offshore projects

NETHERLANDS: Dong Energy has bought the remaining 50% stakes in three Dutch offshore wind projects with a possible capacity of 1.05GW from SSE.

Dong operates the Gode Wind project in the German North Sea

The deal to buy out its joint venture partner covers the 468MW Den Helder 1, 350MW Breeveertien 2 and 260MW West-Rijn projects.

All are yet to begin construction but have been fully consented, with Dong saying that they could be built by the end of the decade.

Dong will make an upfront payment of EUR 2.3 million, as well as additional deferred payments of up to EUR 12 million as the project reaches milestones in its development.

The Netherlands has a target of getting 4.5GW of offshore wind online by 2023.

As the world's largest offshore wind developer, Dong has already built more than 2GW of offshore projects in Denmark and the UK. The Danish utility has a target to construct 6.5GW by the end of 2020.

Last week, Dong bought the UK's 580MW Race Bank project in the North Sea despite the project having been rejected for approval under the new contract for difference subsidies regime.