Energy giant SSE has announced a groundbreaking £33bn investment program to modernize the UK’s electricity infrastructure, calling it a “once-in-a-lifetime opportunity” to transform the way electricity is generated, transmitted and distributed across the country.
The Perth-based company said the five-year plan, running from 2029 to 2030, would see it raise £2 billion from investors through a share placement and generate a further £2 billion through targeted asset sales. The move is intended to finance an ambitious expansion of its electricity networks and renewable energy capacity.
Shares in the FTSE 100 group rose almost 12 percent after new chief executive Martin Pibworth unveiled the plans. This brought clarity to how the company plans to fund its capital commitments and marked a bold start to its leadership.
Under the new strategy, SSE’s annual investment will triple to £33 billion, with around 80 per cent going to regulated electricity networks, which will now form the backbone of the company. The company said it would provide £22 billion to upgrade high-voltage transmission cables across the UK – infrastructure described as “crucial to connecting renewable energy and removing existing constraints on the electricity grid”.
A further £5 billion will be spent on strengthening regional low voltage distribution networks in Scotland and southern England. The remaining 20 per cent of the budget will be split between £4 billion for renewable energy – mainly wind and hydro – and £2 billion for flexible gas generation and other business areas.
Pibworth said the strategy was designed to deliver a cleaner, safer and more affordable energy system for the UK while boosting economic growth.
“Our plans are based on the unique opportunity to modernize the UK electricity network,” he said. “The accelerated investment is underpinned by a secure regulatory framework from the UK Government and will unlock much-needed growth across the economy and support thousands of jobs over the course of the plan.”
The company said more than half of the funding would come from operating cash flow, while a third would be funded through borrowing, leaving only about 10 percent needing to be covered through equity raising and asset sales. Analysts welcomed the clarity, noting that the size of the fundraising was smaller than many had expected.
Ahmed Farman, an analyst at Jefferies, said: “The new plan brings clarity to the company’s balance sheet and growth prospects. The £2 billion equity raise is at the lower end of the previously discussed scenarios.”
SSE operates transmission cables in the north of Scotland and distribution networks in both Scotland and central southern England. The company also owns and manages a portfolio of wind farms, hydroelectric plants and gas-fired power plants.
The announcement coincided with the release of SSE’s half-year results, which showed a 28 percent fall in adjusted pre-tax profit to £521.5 million for the six months to the end of September. The company cited weaker performance from its renewable energy division due to “less favorable weather and lower hedged prices” as hydropower production fell after an unusually dry summer in Scotland.
Despite the short-term hit to profits, SSE’s multi-billion-pound investment represents one of the most significant commitments yet to modernize Britain’s electricity networks – a move analysts say will be crucial to meeting national net-zero targets and unlocking future renewable energy capacity.
