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Renewable energy

SSE Slashes Green Energy Spending Plans by £3bn

Strategic Insights

— 1 min read

Energy giant SSE has drastically reduced its green energy spending plans by £3bn and expressed doubts about meeting its 2030 net zero goals, citing planning and policy delays by the UK and Scottish governments. The company's chief executive, Alistair Phillips-Davies, warned that the current macroeconomic environment and wider delays to planning processes make it unlikely to meet targets for renewable output. SSE will cut its investment in renewables from around £20.5bn to £17.5bn over the next five years, with the majority of the remaining investment going to transmission and distribution networks.

Key Takeaways:

  • SSE has slashed its green energy spending plans by £3bn, citing planning and policy delays by the UK and Scottish governments.
  • The company's chief executive, Alistair Phillips-Davies, expressed doubts about meeting its 2030 net zero goals, stating it is "unlikely" to meet targets for renewable output.
  • SSE will reduce its investment in renewables from around £20.5bn to £17.5bn over the next five years.
  • The majority of the remaining investment will go to transmission and distribution networks, with only around 30% allocated to new renewables.
  • SSE's dialogue suggests a warning to the UK government to reassess its subsidy system for renewable energy projects, including possible increases in subsidy rates.
  • The company reports £2.4bn in adjusted operating profit for the year ended March 31, with a £1.8bn profit after tax.
  • SSE's transmission and distribution divisions generated £1bn in adjusted profits, a 45% increase from last year.
  • The profit for SSE's Renewables division surged by 25% to £1bn.

Statistics:

  • SSE's reduced investment in renewables: £3bn cut from £20.5bn to £17.5bn over 5 years.
  • Remaining investment: 70% (£12.35bn) for transmission and distribution networks, 30% (£5.25bn) for new renewables.
  • Adjusted operating profit: £2.4bn for the year ended March 31.
  • Profit after tax: £1.8bn for the year ended March 31.
  • Increased profit for transmission and distribution divisions: 45%, from £691m to £1bn.
  • Increased profit for Renewables division: 25%, from £833m to £1bn.

Sources:

  • Byline: Jonathan Leake, Energy giant SSE (no date or publication date provided)
  • Name: Alistair Phillips-Davies, Chief Executive, SSE
  • Organization: SSE, a power company operating in the UK and Scotland
  • Publication: Original source not specified, possibly a news article or press release

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