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British utility SSE plans a five-year investment of GBP 33 billion (USD 44.29 billion) to modernize the UK electricity network and expand renewable energy operations. Around 80% of the investment will upgrade regulated electricity networks, with the rest directed toward renewables and flexible generation assets. Funding will come from operational cash flows, increased borrowing, a GBP 2 billion (USD 2.7 billion) equity raise, and asset sales worth GBP 2 billion. The announcement follows a 28% drop in first-half adjusted pretax profit due to lower output and unfavorable weather conditions.
British utility SSE has unveiled a GBP 33 billion (USD 44.29 billion) investment plan over the next five years aimed at modernizing the UK electricity network and expanding its renewable energy business. To partially fund this plan, SSE is raising GBP 2 billion (USD 2.7 billion) through an equity placement, while also planning to sell assets worth GBP 2 billion. Advertisement
Approximately GBP 27 billion, or 80% of the total investment, will be directed toward upgrading regulated electricity networks, including improving grid reliability and enhancing capacity. The remaining funds will be invested selectively in renewable energy projects and flexible generation assets to strengthen SSE's low-carbon energy portfolio. The company expects the plan to be funded mainly through operational cash flows and increased borrowing, supported by the equity raise and asset sales.
SSE's chief executive Martin Pibworth stated that the plan represents a significant opportunity to upgrade the UK electricity system and make it cleaner, more secure, and more affordable. The investment will not only help the company address current energy demands but also position it for growth in the evolving energy market.
The plan follows SSE's report of a 28% decline in adjusted pretax profit for the first half of its financial year, which fell to GBP 521.5 million. This decline was largely due to lower electricity output and adverse weather conditions during the six-month period ending September 30. SSE believes that the investment plan will help stabilize performance and support long-term growth despite the recent challenges.
The company has a history of investing in renewable energy and network upgrades. Past projects include wind farms, solar installations, and improvements to grid infrastructure. The current initiative builds on this experience, aiming to strengthen energy security, support the transition to low-carbon power, and enhance overall system efficiency.
Source Reuters
5th Jun, 2025
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