SCOTTISH Hydroelectric owner SSE has agreed a deal to sell the output from a giant windfarm which underlines the scale of interest in the sector among big corporations.
SSE has signed Power Purchase Agreements with Scottish Gas owner Centrica and with the energy trading arm of Shell covering the output from the third phase of the Dogger bank windfarm.
The agreements cover 15-year terms. SSE said they were reached following a competitive bidding process.
The Perth-based group expects the signing of the agreements to help it to secure the financing required for Dogger Bank C by the end of this year.
It has already secured backing from international investors for the first two phases of Dogger Bank.
The windfarm is expected to be able to generate enough renewable electricity to power six million homes.
READ MORE: SSE sells stake in huge windfarm to Italian oil giant
SSE is developing the windfarm off north east England with Norwegian oil giant Equinor.
Italian oil sector heavyweight Eni has acquired stakes in all three phases of Dogger Bank from the two partners.
Shell previously concluded PPAs covering the first two phases of Dogger Bank.
The latest deals provide further evidence that leading energy sector players expect to be able to generate good returns in the renewable electricity business. Shell’s directors plan to transform the group into a broad-based energy business capable of supporting the transition to a cleaner energy system.
Centrica put its North Sea oil and gas business up for sale in 2019 but has yet to find a buyer.
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