DNV conducts a vendors technical due diligence to review a portfolio of 3.9 GW of wind and solar assets in Europe for SGRE

Support organizations in tackling the energy transition by increasing the proportion of renewable Energy

Key benefits
DNV conducts a Vendors Technical Due Diligence to review a Portfolio of 3.9 GW of wind and solar assets in Europe (Greece, France, Italy, and Spain), for the purpose of selling it, together with the SGRE wind farms development platform.

About the customer
SGRE is a very well-known player in the Wind Industry: one of the biggest wind turbine OEMs and with a significant presence on the O&M side. SGRE also has quite relevant development capabilities, with a specific business area for these activities and several GW of wind farms developed. This wind farms development platform is being sold together with the portfolio of wind farms (and a few PV plants).

The challenge
A big portfolio, composed of several projects in four different countries, with a total of 3.9 GW to be evaluated together with the Company development capabilities (to add this significant value). The target was to conduct an appropriate technical analysis for the valuation, to help in the selling process.

DNV's contribution or solution
By evaluating technical risks, mitigation measures, technical strengths, and technical, and financial aspects of the project, together with the Company development capabilities, a solid Vendors Due Diligence Report was provided. After that, DNV support the Customer with VCs and Q&A sessions with bidders, to help in the Transaction.

Benefits / Added value to the customer
The customer benefitted from the experience of the DNV team in Europe and in similar, which finally obtained a detailed evaluation of the assets, and had a holistic vision of the portfolio, reflected in the Vendors Due Diligence Report. Additionally, the bidders had the opportunity to ask specific questions to improve their valuation process.

Findings
The portfolio was an excellent investment opportunity and SGRE presented the DNV Vendors Technical Due Diligence Report together with info memos and a lot of information, giving a good view of the portfolio and Development Capabilities, which increased the Project value in the transaction. Six relevant players showed interest in the Project.

Services that we offer - Our approach
Scope of work:

  • Energy Analysis
  • Grid connection and permitting review
  • Opinion on success rate
  • Project costs projections
  • Opinion on the projects development capabilities
  • Bidders support

Today's announcement reflects Siemens Gamesa's ability to optimize its asset portfolio and generate maximum value. Our wind farm development team in Southern Europe has been able to develop an excellent portfolio of wind projects in four countries over the years, as demonstrated by the strong interest generated in the market for this portfolio; we are confident that SSE is the right partner to develop these projects and integrate Siemens Gamesa's people.

  • Jochen Eickholt,
  • CEO of Siemens Gamesa

We are delighted to drive forward SSE's Net Zero Acceleration Program by extending our existing renewables business into Southern Europe through this acquisition. Continental Europe is a high-growth market for onshore wind, with concrete carbon reduction targets and favorable public policies in this area. In addition, having an expert management team in place will perfectly complement our leadership in the sector. The portfolio of projects we are acquiring provides excellent assets and will be a real springboard for our expansion plans in Europe in the wind, solar, battery and hydrogen sectors.

  • Stephen Wheeler,
  • CEO of SSE Renewables

Europe is a frontrunner in the energy transition with the EU steering energy policy to align with the Paris Agreement, transaction such as this (and with significant player such as Siemens Gamesa and SSE Renewables), are going to impact in reducing emissions. We need to move ahead at full speed and our contribution as advisors is to support organizations in tackling the energy transition by increasing the proportion of renewable Energy.

  • Jesus Navarro,
  • Senior Engineer, DNV