SSE to sell stake in SSEN Transmission to Ontario Teachers’ Pension Board

UK-based energy company SSE has agreed to sell a 25% stake in SSEN Transmission, its electricity transmission network business, to Ontario Teachers’ Pension Plan Board.

The stake is being sold for a total cash transaction of more than $1.7bn (£1.4bn). The sale process is expected to begin early next year and the deal is expected to close shortly; SSE added that the transaction is based on an effective economic date of 31 March this year.

The company will use the proceeds from the sale to support growth in its other core businesses while ensuring a balance of capital allocation across the group.

Despite the sale of the stake, SSE will continue to be the majority shareholder of the business and keep control of its operations and management.

This would be done via the sale of minority stakes in SSE Renewables and SSEN Transmission under the Net Zero Acceleration Programme (NZAP). The programme could reportedly help deliver around 20% of the offshore wind generation and electricity networks required in the UK by 2030.

SSE Finance director Gregor Alexander said: “We are delighted to agree a transaction that will help unlock the full potential of our growing electricity transmission business, which remains core to our strategic direction as a clean energy champion specialising in electricity infrastructure.”

Enel Green Power Chile begins developing La Cabaña wind farm

Enel Green Power Chile has begun the construction of La Cabaña, a 105.6MW wind farm that also features a 34.3MW battery energy storage system (BESS).

Located in the Araucanía Region in Angol municipality, the project will be developed with an investment of around $190m. The La Cabaña wind farm will be equipped with 22 wind turbines, each with 4.8MW of capacity.

During its construction phase, the project will employ around 450 people. Enel Green Power Chile, a subsidiary of Enel Chile, said it will hire local labour specialised in developing renewable energy plants for La Cabaña.

The project is also expected to contribute to local growth by generating shared value creation policies.

The company also noted that the BESS facility at the La Cabaña wind farm will be equipped with lithium batteries. La Cabaña is part of a renewable portfolio being developed by Enel Chile, through which the company aims to promote the decarbonisation of its generation matrix.

Earlier this year, Enel agreed to sell its 99.09% stake in Enel Transmisión Chile to Sociedad Transmisora Metropolitana and its controlling company Inversiones Grupo Saesa. The controlling stake will be sold for a $1.34bn equity consideration.

Enel Chile general manager Fabrizio Barderi said: “With the start of La Cabaña’s construction, we are continuing to lead the energy transition process towards a generation matrix based on renewable energies."

Actis’ BluPine Energy acquires 404MWp solar portfolio in India

Blupine Energy, a renewable energy company owned by global investment firm Actis, has acquired a 404MWp solar portfolio in India from the Atha Group.

The financial terms of the deal have not been disclosed, but according to Indian publications, the enterprise value of the solar assets is around $257.58m (Rs21bn). The deal is part of BluPine’s strategy to have 4GW of installed capacity over the next four to five years.

Actis launched BluPine Energy earlier this year with the aim to boost its utility-scale solar, wind and storage portfolios. The company follows a buy-and-build strategy involving both government and commercial and industrial power purchase agreements across India.

In addition, Actis has pledged to invest up to $800m in BluPine via its Energy 5 Fund, which represents $6bn of investable capital. In October this year, Global Infrastructure Partners acquired Latin American renewable energy firm Atlas Renewable Energy from Actis for an undisclosed sum.

BluPine CEO Neerav Nanavaty said: “We are delighted to complete this transaction, which not only brings a significant utility-scale solar capacity of 404MWp, but also provides the seed assets for BluPine Energy and increases our geographical footprint."

Sunwin Energy agrees to sell 375MW solar portfolio in Italy

Swiss energy company Sunwin Energy has reached a framework agreement with an undisclosed European firm to sell its 375MW solar portfolio in Italy. The solar portfolio consists of 15 mid-stage, ground-mounted solar photovoltaic projects, which Sunwin Energy has been developing in the region in recent years.

The projects are expected to start coming online between next year and 2026, with each project’s capacity ranging from 10MW to 75MW.

German consulting company Capcora served as the exclusive mergers and acquisitions advisor for the deal, while Bird and Bird acted as a sell-side legal advisor. The financial details of the deal have not been announced.

A subsidiary of Energie Zukunft Schweiz, Sunwin Energy employs 200 colleagues and has offices in Switzerland, Germany, Spain, Romania and Italy. The company has been active in Italy since 2019 and is currently developing a 1GW project pipeline in the country.

Sunwin Energy managing director Lars Konersmann said: “We are pleased to enter into this new partnership with an international and reputable player for a significant part of our 1GW portfolio in development.

"The cooperation strengthens our position as an experienced greenfield developer in the dynamic Italian market."

Shell and Alternergy to develop offshore projects in Philippines

Shell has partnered with British renewable energy firm Alternergy to develop offshore wind projects in the Philippines, the Philippine News Agency has reported.

The two firms intend to use the Batangas Port for the Calavite Passage offshore wind project. Shell Asia-Pacific Offshore Power general manager Joe Nai said that the availability of infrastructures such as ports, cranes and vessels would support the development of the Philippines’ offshore wind industry.

Nai added that the offshore projects would boost other industries, as their development would require turbines, steel, towers and electrical cables among others, as well as design and construction skills.

The partnership will be carried out through Alternergy’s unit Pililla AVPC. Alternergy chairperson Vince Perez said that the partnership plans to develop an offshore wind project with a potential capacity of 5GW in Calavite Passage.

He added that the firm will also develop 1GW of offshore wind capacity in the north-west corner of Mindoro.

Perez said: “Shell, as our strategic partner with 50 years of deep water offshore and over 20 years of offshore wind development experience, will bring in its global track record, supply chain access, and technical expertise in developing large-scale bottom-fixed and floating wind projects."

Jindal selected to build 300MW coal power plant in Botswana

Indian steel company Jindal Steel & Power has been selected as the preferred bidder to build a 300MW coal-fired power plant in Botswana, as reported by Reuters.

The facility is the only fossil fuel-based power plant that Botswana plans to procure in the next 20 years. Following the launch of a tender round, four companies were shortlisted for the coal project development contract.

One of the companies subsequently withdrew from the tender round, leaving Jindal, African Energy Resources and Minergy in the race. Botswana is estimated to hold more than 200 billion tonnes of coal resources.

Despite opposition to coal due to its environmental impact, the country is looking to monetise its coal resource to develop its economy.

Jindal will be responsible for financing the power plant’s construction and will recoup its investments from selling power to the Botswana Power Corporation (BPC) under terms agreed by the two firms.

The country’s only operating coal mines are the state-owned Morupule Coal Mine and Minergy’s Masama mine.

Due to Russia’s invasion of Ukraine, Botswana has expedited its exports of coal to European nations in the past months via Mozambique and Namibia.

In November last year, Jindal told Reuters that it planned to start building a coal mine in Botswana’s south-eastern Mmamabula coalfields this year.

In an official notice, the Botswana Energy Ministry said: “The contract (is) for the design, finance, construction, ownership, operation, maintenance and decommissioning at the end of its economic life … of a 300MW net greenfield coal-fired power plant in Botswana as an independent power producer.”

US DOE gives conditional funding to Diablo Canyon nuclear plant

The US Department of Energy (DOE) has approved conditional funding of around $1.1bn for Pacific Gas and Electric Company’s (PG&E) Diablo Canyon Power Plant (DCPP) in California.

Located in San Luis Obispo County, the plant is set to be completely closed in 2025 with the expiry of its current licence. PG&E filed an application for federal funding from the DOE’s Civil Nuclear Credit Programme on 2 September.

The application was filed on the same day California Governor Gavin Newsom signed Senate Bill (SB) 846 into law, which supports a five-year extension of DCPP to meet the state’s energy requirements.

The DOE said the final award amounts will be based on actual costs and be determined after each year of the award period has been completed.

Diablo is the last operational nuclear plant in California and can generate 2.2GW of baseload electricity.

The facility currently provides around 17% of the state’s zero-carbon electricity supply and 8.6% of its total power supply.

PG&E Corporation CEO Patti Poppe said: “This is another very positive step forward to extend the operating life of Diablo Canyon Power Plant to ensure electrical reliability for all Californians.

“While there are key federal and state approvals remaining before us in this multi-year process, we remain focused on continuing to provide reliable, low-cost, carbon-free energy to the people of California, while safely operating one of the top-performing plants in the country.”