SSE PLC on Tuesday confirmed plans to advance the development of the 2 gigawatt Alpha offshore wind farm site with its Dutch joint venture partner Algemene Pensioen Groep NV.

In June, the Perth, Scotland-based energy company, which now holds a 50% stake in the project, and its partner were awarded the rights to a pre-developed and fully consented offshore wind site in the North Sea by the Dutch government.

The consortium will enter into a 40-year lease period for the site at an approximate cost of €1 million each year.

As part of the lease, the consortium will be bound by a performance bond linked to the on-time delivery of the wind farm and will reimburse the Dutch government €20 million for the cost of previous environmental and characterisation studies.

SSE Renewables Managing Director Stephen Wheeler said: ‘Our successful bid is testament to the work the consortium and its partners have undertaken to put forward a compelling set of proposals to sensitively develop our proposed offshore wind project in a manner which will positively contribute to the marine environment while delivering a cleaner and more secure energy system for the Netherlands.’

Located 62 kilometres off the Dutch coast, the Alpha site will produce enough power to meet 7% of the current energy demand in the Netherlands.

With a 1GW share, the project advances SSE’s secured offshore wind pipeline to 9.3GW in line with the company’s plans to grow its position in the sector.

Once the expected final investment decision is made by late 2025, the commissioning of the wind farm is due to occur at the end of the decade.

SSE shares were up 0.8% to 1,843.50 pence each in London on Tuesday morning.

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