SSE adds ‘£3.9bn to economy’ with windfarm growth

SSE’s onshore wind growth added £3.9 billion to the UK and Irish economies over the past decade, the company has estimated.

In its A Decade of Clean Growth report published Friday (20 July), the company revealed it has more than tripled its installed onshore wind capacity since 2008.

The news comes days after a YouGov poll revealed a majority of people in Britain support the building of windfarms.

In 2008/09 onshore wind generation was enough to power 390,000 homes for a year across the UK and Ireland whereas in 2017/18 this increased to 1.35 million.

From April 2008 to March 2018, SSE built and/or operated a portfolio of more than 60 wind farms.

SSE estimates it has added £3.4 billion to the UK economy as a result of its committed spend on windfarms between 2008 and 2018 (including capex) and ongoing expenditure up to 2040 on onshore wind.

A majority of the windfarms are located in Scotland and £2.3 billion was added to the Scottish economy, with more than 43,000 years of full-time employment supported in the country as a result.

In Ireland approximately €600 million (£500 million) was added to Irish GDP over the study period which brings the total contribution of SSE’s onshore wind portfolio to £3.9 billion across the UK and Ireland.

While a majority of economic activity and local area impact will happen during the construction of a windfarm, investment in the ongoing operation and maintenance in the infrastructure will add long-term economic benefits to the project.

As part of a capital recycling programme around 430MW were sold on to other investors, with SSE continuing to operate and maintain a number of these sites.

As of June 2018, SSE owns 1,917MW of onshore wind with an additional 228MW at Stronelairg, Scotland, due to be completed during 2018/19.

The company now has more than 800MW of potential new builds or extensions in the pipeline which it says it could deliver in the “right economic conditions”.

Paul Cooley, SSE’s director of generation development, has called on governments to “take action” and develop a supportive framework that addresses the market and planning challenges being faced by the onshore wind industry.

He added: “At SSE, maximising the social and economic impact of our windfarms is hugely important, especially in rural areas, where long-term skilled jobs and investment can support the long-term viability of remote communities.

“The industrial strategy sets out a long-term plan to boost the productivity and earning power of people throughout the UK. It sets out how we are building a Britain fit for the future – and onshore wind should be part of this picture.”

As well as providing a boost to the economy, the wind projects are estimated to have avoided over 13.4 million tonnes of CO2 being released into the atmosphere.

Despite the positive report, the company published its Q1 trading update for 2018 on 19 July which stated operating profits were “negatively impacted” by £80 million.

Poorer than average wind conditions resulted in output from both onshore and offshore windfarms being around 15 per cent lower than expected.

Hydro output was higher than in the same period in 2017 due to increased levels of snow melt but output was 20 per cent lower than anticipated.

The update highlighted these factors have resulted in a higher cost of energy, lower than expected output of electricity from renewable sources and lower volumes of energy being consumed.