SSE said its investment in Great Britain’s electricity infrastructure system could total more than GBP24 billion ($30 billion) this decade, as part of its Net Zero Acceleration Programme (NZAP).
The company’s integrated operations stretch from renewables to regulated electricity networks. It plans to invest in some of the world’s largest offshore and onshore wind projects, critical network upgrades, hydrogen, carbon capture and storage (CCS) and hydroelectric power.
Assuming a continued supportive policy environment, the group’s current investment plans will see it investing significantly more than it makes in profits over the next few years in order to realize its growth opportunities and accelerate the transition to net zero. This will include:
A fivefold increase in renewable output by 2031;
Apgrading electricity networks to support increased demand; and
Investing in low-carbon flexible generation such as pumped hydro storage and CCS.
SSE says these plans will enable the delivery of more sustainable homegrown energy by reducing reliance on imported gas and helping keep costs down for consumers in the future. This includes delivering around a fifth of the UK’s offshore wind generation targets and planned network investment.
The investment update came as part of SSE’s full-year financial results for 2021/22.
“Against the backdrop of a global gas crisis, we are investing far more than we are making in profit to deliver clean homegrown energy that will bolster security, cut emissions and make energy more affordable over the long term,” said Alistair Phillips-Davies, chief executive of SSE. “These results demonstrate the strength of our strategy and highly complementary business mix, the passion and commitment of our people, and our ability to deliver for all our stakeholders as we create thousands of jobs and contribute billions to GDP.”
SSE reported adjusted operating profit of GBP1.5 billion, up 15% year-on-year as lower renewables output due to unfavorable weather were offset by a stronger performance from the company’s flexible generation assets, including hydro and gas-fired power stations, which provided a critical role maintaining security of supply.
In November 2021, SSE published details of its fully-funded NZAP: a GBP12.5 billion five-year strategic capital investment plan to 2026 focused on the delivery of electricity infrastructure needed in the transition to net zero.
SSE’s current projects include:
- Constructing the world’s largest offshore wind farm at Dogger Bank, off the cost of East Yorkshire, with partners Equinor and ENI;
- Building the UK’s largest onshore wind farm in Shetland, as well as the high voltage transmission link that will connect it to the mainland;
- Developing the Seagreen offshore wind farm, which will be Scotland’s largest and is expected to be operational next summer, with Total;
- Developing, with Equinor, what could be the UK’s first CCS facility and the world’s first major 100% hydrogen-fueled power station in Keadby, in Lincolnshire;
- Investing in the UK’s first major hydro pumped storage project in more than 30 years at Coire Glas in the Scottish Highlands, which would play a critical role by providing power for up to 3 million homes for 24 hours when the wind isn’t blowing. The project would have generating capacity of up to 1,500 MW.
