SSE Renewables has agreed to acquire Siemens Gamesa Renewable Energy (SGRE)’s South European renewable energy development assets for a total consideration of €580m.

The transaction includes a portfolio of onshore wind projects located in Spain, France, Italy and Greece, with a total capacity of 3.9GW, currently in various stages of development.

In addition, the onshore windfarm portfolio is anticipated to support the development of up to 1GW of additional co-located solar photovoltaic projects.

SSE Renewables targets to put around 500MW of projects from the SGRE portfolio into operations by March 2026.

Under the terms of the transaction deal, a team of around 40 experienced Siemens Gamesa personnel will be transitioned into SSE Renewables.

In addition, SSE Renewables holds an option to partner with Siemens Gamesa on the provision of turbines and their long-term maintenance services in the next few years.

The acquisition is expected to be closed by the end of September this year, subject to customary regulatory approvals, and approval form relevant foreign direct investment authorities.

Siemens Gamesa CEO Jochen Eickholt said: “Today’s announcement demonstrates Siemens Gamesa’s capacity to optimize its portfolio of assets and maximize value.

“Our South European project development team has built an excellent and unique portfolio of wind projects in four countries over the years; as a result, there has been very strong market interest for this portfolio and we are confident SSE will be the right partner to develop these projects and integrate our employees.”

The transaction would combine SGRE’s development experience across continental Europe and SSE’s expertise in building and operating wind farms.

SSE Renewables said that the acquisition marks its entry into Southern Europe, building on its renewables business in the UK and Ireland, with 4GW of operating assets.

The addition of SGRE assets would complement its strategic objectives and is in line with the group’s Net Zero Acceleration Programme (NZAP), said the company.

The NZAP initiative targets a fully funded £12.5bn capital investment plans by 2026.

SSE Renewables managing director Stephen Wheeler said: “We are delighted to boost the delivery of SSE’s Net Zero Acceleration Programme by expanding our existing renewables business into Southern Europe through this acquisition.

“Mainland Europe is an exciting growth market for onshore wind, with clear carbon reduction targets and supportive policies, whilst the expert management team will complement our sector-leading capabilities perfectly.

“The project portfolio brings some excellent assets and will provide a real springboard for our expansion plans in Europe across wind, solar, batteries and hydrogen.”