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SSE Announces £12.5 Billion Investment in Green Energy

SSE, Scottish and Southern Energy, has been facing pressure from Elliott Management, an activist hedge fund, which acquired a stake in the company this year.

They want  SSE to split off the fast-growing renewable energy business. However, SSE announced they plan to invest more.

According to the Guardian, SSE will invest £12.5 billion in the next five years. Their previous goal was to invest £7.5 billion. They want to help the UK reach a net-zero climate target.

statement
“SSE said it had “carefully considered a wide range of available strategic options,” including the separation of its renewables division, but had concluded it would “not be the best route for growth, execution and value creation and was not therefore in the long-term interests of its stakeholders.”

By the end of this decade, SSE aims to have a quarter of the UK’s offshore wind farms, including the electricity grid networks in parts of Scotland and England.

SSE’s chief executive, Alistair Phillips-Davies, says that a large business scale, which includes networks and thermal power generation, is the key to financing large-scale projects needed to aid climate change.

So far, they’ve been doing well. They’ve doubled their profits in the first half of the year, even though there was a slowdown in wind speeds. Phillips-Davies plans to talk more with shareholders, and he hopes they’ll support the green investment.

Marina is passionate about sustainability and works to help ensure our planet stays as our home for a long time. She takes part in environmental conservation by recycling and not buying single-use plastic. When not writing, she can be found with her nose stuck in a book or trying out new baking recipes.


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