SSE unveils £33 billion plan, reversing earlier investment cuts

SSE PLC on Wednesday announced a fully-funded 33 billion British Pounds five-year investment plan, a significant increase that reverses earlier spending cuts.

The British energy company said the plan, which runs to 2030, represents a trebling of investment over the period.

Around 27 billion British Pounds, or 80% of the total, will be invested in its regulated UK electricity networks, with the remaining 6 billion British Pounds going to renewables and flexible generation projects, the company said.

The new strategy marks a shift from earlier in the year, when SSE had reduced its investment forecast and cut spending on renewables to increase its focus on networks.

Chief Executive Martin Pibworth said the plan "is built on a once-in-a-generation opportunity to upgrade the UK electricity network and build a cleaner, more secure and more affordable energy system."

The investment will be funded through operational cashflow, debt, asset sales, and a 2 billion British Pounds equity placing launched alongside the announcement.

SSE said it expects adjusted earnings per share to grow between 7% and 9% annually through 2030 and will target annual dividend growth of 5% to 10%.

The company also reported half-year adjusted earnings per share of 36.1 pence, which it said was in line with expectations.