LONDON, Sept 16 (Reuters) - Plans by European oil companies
to increase their renewable power capacity are driving up the
price tags on renewable businesses and projects, the CEO of
British renewables and network company SSE, told Reuters.
BP, Shell and Total have all
announced renewable expansion plans this year to reduce their
reliance on fossil fuels and meet internal climate targets.
Analysts say much of the growth will need to come through
acquisitions.
"I’m delighted to see some of these companies coming in and
paying substantial prices for assets. That will help in terms of
pushing up the prices of assets we are selling," SSE’s Alistair
Phillips-Davies said in an interview.
BP last week agreed to pay $1.1 billion for 50% stakes in
two U.S. offshore wind developments from Norway's Equinor
SSE, which is seeking to divest around 2 billion pounds
($2.6 billion) of assets, has said it would sell at least a 10%
stake in its Dogger Bank offshore wind project being developed
off the British coast with Norway’s Equinor.
SSE also earlier this year sold a 51% stake in its Seagreen
1 British offshore wind farm project to France’s Total.
"Generally, seeing oil companies come in with their
experience of offshore is good news for the industry. Although
it will make the market more competitive it will also bring new
focus and new technology and innovation," Phillips-Davies said.
($1 = 0.7703 pounds)
(Reporting By Susanna Twidale. Editing by Jane Merriman)
SSE (SSE)
BP (BP.)
