SSE Plans £22 Billion Investment to Bolster Scotland’s Grid

(Bloomberg) -- SSE Plc’s transmission business plans £22 billion in investments to deliver critical grid infrastructure in Scotland, key to the UK’s energy security goals and ambition to reach a clean power grid by the end of the decade.

The British power generator’s transmission unit will submit its strategic investment plans, that outline a baseline spend of £6 billion, with £16 billion allocated to pre-approved projects, to the regulator Ofgem, the company said in a statement on Tuesday.

SSEN Transmission’s targets include the north of Scotland’s transmission network having the capacity to meet 20% of Britain’s clean power needs, the firm added. Expanding the grid and attendant infrastructure improvement is key to the UK’s green targets, allowing wind power from Scotland to be transported to demand centers in England. 

The investments plans cover the period from April 2026 through March 2031.

SSEN Transmission’s ability to deliver on its investment plan hinges on Ofgem approvals of the regulatory framework that supports the scale and speed of these critical projects, the company statement added.

“It is now crucial that Ofgem backs that ambition with an investable and financeable framework, setting an appropriate cost of equity that recognizes the unprecedented levels of investment required to decarbonise the economy and deliver a clean power system,” SSE CEO Alistair Phillips Davies said.

©2024 Bloomberg L.P.