Energy supplier SSE plans to invest £2bn “largely in low carbon projects” over the coming tax year, after sales of several of its fossil fuel assets and soaring revenues from renewable energy buoyed its profits even despite the disruption of the Covid-19 crisis last year, it announced today. Posting its full-year financial results for 2020/21 this morning, SSE said ongoing divestment of high carbon projects in support of its 2050 net zero target announced late last year, combined with a 29 per cent increase in profits from its renewable energy business, had seen it end the tax year with a one per cent overall increase in operating profits to £1.5bn.
Business Green 26th May 2021 read more »
ENERGY giant SSE is making a bid to ramp up growth in the windfarm market off Scotland significantly in a move it expects will provide a boost to the supply chain, which would be badly-needed. Chief executive Alistair Phillips-Davies said the Scottish Hydroelectric owner hopes to be one of the big winners in the forthcoming ScotWind licensing round, which covers huge swathes of the seabed off the country.
Herald 27th May 2021 read more »
The UK’s electricity grid risks falling behind the planned increase in wind turbines without major upgrades, the man developing the world’s largest offshore wind farm has warned. Alistair Phillips-Davies, chief executive of FTSE 100 power giant SSE, said getting electricity from wind farms to where it was needed was “one of the more concerning areas” as the UK tries to hit new targets to quadruple offshore wind capacity. “Are we going to have enough transmission infrastructure built quickly enough?” he said. “Transmission operators and Ofgem [the energy regulator] need to make sure they can build clear and easy links to the shore up and down the east coast in the UK and maybe near the Irish Sea as well, wherever the wind farms are being built.” SSE is building Dogger Bank, the world’s largest offshore wind farm, off the north-east of England, with partners Eni and Equinor. It should be up and running by 2026 and able to provide up to 5pc of national electricity demand. The 5.6GW capacity farm will contribute towards the Government’s target of generating 40GW of offshore wind by 2030
Telegraph 26th May 2021 read more »
SSE plans to sell its remaining interest in UK gas pipelines by the end of this year, in a move that could fetch £1 billion, as it ploughs cash into offshore wind farms and electricity networks. The FTSE 100 energy group said that as well as offloading its 33 per cent stake in SGN it could also still look to sell a minority stake in one of its power networks to help to fund planned investment of at least £7.5 billion by 2025.
Times 27th May 2021 read more »
SSE was a Tempus top pick for 2021 and this column has rated it a “buy” since May 2019. In that time, the shares have climbed by 48 per cent. The investment case is based on the reliable income stream from the FTSE 100 energy supplier’s dividend and the clear strategy to move away from fossil fuels and into renewables. Both elements were on show yesterday when SSE reported results for the year to the end of March. It will make a final payout of 81p and “remains committed” to its five-year plan to pay dividends that increase in line with RPI inflation until 2023.
Times 27th May 2021 read more »