The Anonymous Widower

SSE Announces Construction Of Aberarder Wind Farm

The title of this post, is the same as that as an advert on my online edition of The Times.

Click the advert and you get this page, with the title of this post.

This is the sub-heading.

Aberarder secured 15-year CfD in UK Allocation Round 5

These three paragraphs give more details of the wind farm.

SSE has taken a final investment decision to proceed with Aberarder Wind Farm in the Scottish Highlands, in a circa £100m investment boost for its onshore wind portfolio.

Construction of the 12 turbine, 50MW wind farm, which is wholly owned by SSE Renewables, will begin before the end of the year with completion scheduled for the end of 2026. The Aberarder project was successful in September 2023 in the UK’s fifth Contract for Difference (CfD) Allocation round, securing a 15-year contract for low-carbon power generation.

Located at Strathnairn near Inverness, on a natural plateau at an average of 700m above sea level, the Aberarder project site sits directly adjacent to the operational 94MW Dunmaglass Wind Farm, which is jointly owned by SSE Renewables and Greencoat UK Wind.

It would appear that a £100m investment in the Scottish Highlands will get you a fully-operational 50 MW wind farm.

These are my observations and thoughts.

SSE’s Project Overview Of Aberarder Wind Farm

These four paragraphs are SSE’s project overview from this page on the SSE Renewables web site.

The Aberarder Wind Farm project is located in Strathnairn near Inverness, on a natural plateau at an average of 700m above sea level. It will sit directly adjacent to the operational 94MW Dunmaglass Wind Farm, which is jointly owned by SSE Renewables and Greencoat UK Wind.

The project was developed by RES and consented by The Highland Council in April 2017. The consent allows for the construction of a 12-turbine onshore wind farm, with each turbine having a maximum tip height of up to 130m and is expected to have an export capacity of 49.9MW. SSE Renewables reached an agreement with RES to acquire Aberarder in October 2022.

In September 2023 Aberarder was successful in the UK’s fifth Contract for Difference (CfD) Allocation Round and was awarded a 15-year contract for low carbon power generation. SSE took a final investment decision to proceed with Aberarder Wind Farm, in a circa £100m investment in May 2024, construction is scheduled to begin before the end of 2024 with completion scheduled for the end of 2026.

Our focus is now on building strong and meaningful relationships with the local community surrounding the Aberarder Wind Farm. As a responsible developer and operator, we are looking forward to working closely with the community in surrounding area to fully realise the benefits of this exciting project.

Construction has now started and it would appear that in two years, the twelve-turbine wind farm will be producing power.

SSE’s Description Of Dunmaglass Wind Farm

These four paragraphs are SSE’s description from this page on the SSE Renewables web site.

Located to the south east of Inverness, on a natural plateau at an average of 700m above sea level, Dunmaglass is SSE’s highest wind farm to be constructed.

SSE acquired the project from RES in May 2013 and initial enabling works began in the summer of 2013 which included the upgrading of 11km of tracks and the construction of two timber deck bridges.

Highland contractor RJ McLeod was awarded the £16m main civil works contract in summer 2014.

Dunmaglass became fully operational in 2017.

This paragraph also illustrates the challeges of the It looks like the construction of the larger Dunmaglass wind farm.

The height at which Dunmaglass is located presented its challenges during construction and the winter months brought high winds and plenty of snow. The site was fully completed and handed to the operations team in 2017.

Surprisingly, the legendary Highland midges didn’t get a mention.

The Sale Of 49.9 % Of Dunmaglass Wind Farm To Greencoat UK Wind

This sub-heading outlines the sale.

In February 2019, SSE sold 49.9% of Dunmaglass to Greencoat UK Wind PLC as part of a deal in which Greencoat acquired a 49.9% stake in both Dunmaglass and the nearby Stronelairg wind farm.

This paragraph gives more details of the sale.

In February 2019, SSE signed agreements for the sale of 49.9% of Dunmaglass wind farm to Greencoat UK Wind Plc (“UKW”). This sale was part of a £635m deal in which Greencoat acquired a 49.9% stake in both Stronelairg and Dunmaglass wind farms. The stakes equate to 160.6MW (megawatts) of capacity, with an average valuation for the two wind farms of around £4m per MW. This valuation demonstrates SSE’s ability develop quality, low carbon assets and infrastructure vital to the GB energy market.

The interesting figure is that SSE was paid £4m per MW for the interest of 160.6 MW, that they sold.

Aberarder wind farm is a 50 MW wind farm and it appears that it will cost £100 million to build.

If after a couple of years of operation, the wind farm is worth £4 million per MW, then SSE have doubled their money.

Does this illustrate, why the professionals like SSE and Greencoat UK Wind invest in wind farms?

  • SSE would have taken the risk, that they could build the wind farm.
  • SSE have the engineering skillsto do an excellent job.
  • Greencoat UK Wind are buying into a producing asset, with a known cash flow.

SSE also get more money to build more wind farms.

Where Are Aberarder And Dunmaglass?

This Google Map shows the site of Aberarder wind farm with respect to Inverness.

 

Note.

  1. Inverness is at the top of the map on the waters of the Solway Firth.
  2. Aberarder wind farm is marked by the red arrow.
  3. Aberarder is a hamlet to the North-West of the wind farm.
  4. Drumnaglass is a shooting estate to the North-West of the wind farm.
  5. Loch Duntelchaig is the main reservoir for Inverness.

This second Google Map shows the Drumnaglass wind farm.

Note.

  1. Drumnaglass wind farm has 33 turbines and a capacity of 94.05 MW.
  2. There is a track network of 11 km. linking all the turbines.
  3. A good proportion of the turbines can be picked out on the map.

It would appear that Aberarder wind farm will lie to the South-East of this wind farm.

Aberarder Wind Farm To Fort Augustus

In Cloiche Onshore Wind Farm, I talked about the 130.5 MW Cloiche wind farm and its future construction to the East of Fort Augustus and Stronelairg wind farm.

This Google Map shows the position of Aberarder wind farm with respect to Ford Augustus.

Note.

  1. Loch Ness runs across the North-West corner of the map.
  2. Fort Augustus and Stronelairg wind farm, are at the Southern end of the loch.
  3. The red arrow shows Aberarder wind farm.
  4. Foyers pumped hydro is on the Eastern bank of Loch Ness, at about the same latitude as the Aberarder wind farm.
  5. The lake at the bottom of the map, to the South-East of Ford Augustus, is the Glendoe Reservoir, that powers the Glendoe hydroelectric scheme.

There are certainly, a lot of SSE-owned and/or SSE-controlled assets in the area and I wouldn’t be surprised, if SSE integrated them more closely, or added a few more wind farms.

Why Are SSE Advertising The Start Of Construction?

SSE have been advertising for some time on The Times web site.

As they are not a retail energy company anymore, as they sold their retail business to OVO, the advertising, is probably about spreading a good corporate message and getting their strategy broadcast.

September 9, 2024 Posted by | Energy | , , , , , , , , , , , , , | 4 Comments