SSE prioritises grid upgrades in £33bn investment plan

UK power generation, transmission, and distribution company SSE has launched a £33 billion ($43.4 billion) five-year investment plan, focused on regulated electricity networks, renewables, and flexible generation technologies.

The company’s Transformation for Growth plan will see a major ramp-up of SSE’s capital investment over the next five years.

To finance the plan, SSE announced an equity issue of approximately £2 billion ($2.6 billion) to fund the programme, marking a trebling of investment by the company.

Martin Pibworth, announced as Chief Executive of SSE plc earlier this year in March, said in a release: “Today’s transformational investment plan will help build a cleaner, more secure and more affordable energy system. 

“Our focused, disciplined and comprehensively funded investment plan will improve lives, whilst creating sustainable value for our shareholders and society for decades to come.”

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Approximately 80% of the plan’s funding will be directed towards regulated electricity networks; the remainder will go into renewables and flexible generation technologies.

With the issuance and the plan, SSE’s shares soared 17%, reported the Guardian. According to financial firm Morningstar, the equity raise was below market expectations, with most of the step-up in investments to be funded by new debt—a testament to the group’s strong balance sheet. 

Specifically, SSE plans to invest around £22 billion ($29 billion) in its electricity transmission network in the north of Scotland, the majority of which will support 11 well-established projects, part of the Pathway to 2030 programme, which will expand and strengthen the existing infrastructure. These network upgrades will eliminate bottlenecks and connect clean energy to the areas where it’s most needed.

Around £5 billion ($6.6 billion) will be invested into SSE’s distribution networks in the north of Scotland and central southern England. This investment will help to support centres of growing power demand and enable the connection of low-carbon technologies in these areas.

The remainder of the investment will support renewables and flexible generation technologies, including delivering projects such as Dogger Bank, which is currently under construction and will become the world’s largest offshore wind farm when operational. 

Said Chancellor of the Exchequer Rachel Reeves: "This landmark investment by SSE is a vote of confidence in the UK’s energy future. It means greater energy security, lower bills, and a boost for the economy to put more money in the pockets of working people."