SSE reports 29% renewables output shortfall

SSE’s renewable assets generated 29% less power than forecast during the first quarter of the financial year.

In total, SSE’s renewable energy sources produced 624GWh. This represents a 5% shortfall on total planned output for the year.

SSE attributes the drop in output to “dry and still weather patterns” during the three months until the end of June.

Output from the firm’s thermal plants was also down by around 100GWh compared to the same period last year due to a series of planned outages.

Despite the dip in output, SSE’s Q1 trading statement adds that it still expects to meet its full year targets.

It adds: “The key months in SSE’s financial year are still to come and the first few weeks of Q2 have so far seen a return to more normal weather.

“SSE therefore continues to expect to report full-year 2023/24 adjusted earnings per share of more than 150p, on the basis of a return to more normalised weather, and plant performance and market conditions continuing in line with expectations.”

Gregor Alexander, SSE finance director, added: “SSE is a long-term business with a clear strategy, and we remain focused on delivering the ambitious NZAP Plus growth plan that we announced in May.

“We are making good progress on the critical national infrastructure projects that underpin our growth plans out to 2027, and we continue to develop options that could see us invest up to £40 billion over the next decade.

“We are seizing the long-term opportunities presented by net zero while in the near term, subject to normal weather and plant availability, our outlook for the full-year remains unchanged.”

The trading update also provides an update on major projects, including:

• The 114th and final Vestas turbine was installed at Seagreen offshore wind farm in June, and around 90 of the turbines are now commissioned.
• Construction at Viking onshore wind farm remains on track, with more than half of the Vestas turbines now installed.
• First power from Dogger Bank A offshore wind farm is expected in the coming weeks, following connection of the first of the GE Renewables Haliade-X turbines.
• A joint venture was signed with National Grid to deliver the Eastern Green Link 2 (EGL2) project, a 2GW HVDC subsea transmission cable from Peterhead to Drax.
• The Shetland HVDC project is currently on schedule ahead of energisation over the summer 2024, and Ofgem has provided Final Needs Case approval for the subsea transmission link to Orkney.

The company’s subsidiary SSEN Distribution has also announced that it has signed its first-ever sustainability-linked Revolving Credit Facility (RCF).

Worth £250 million, the facility which was originally signed in November 2022, has been upgraded to include three key sustainability-linked performance indicators.

The ESG KPIs relate to the following areas:

• Reduction in Scope 1 and 2 emissions
• Suppliers setting science-based emission reduction targets
• Supporting customers in vulnerable situations