SSE PLC on Wednesday announced a fully-funded, 33 billion British Pounds five-year investment plan to upgrade the U.K.'s electricity grid, deepening its strategic pivot towards regulated networks.
The energy company said around 80%, or 27 billion British Pounds, of the spending through 2030 will be invested in its electricity networks, with the remaining 6 billion British Pounds allocated to renewables and flexible generation projects.
The plan, which trebles the company's investment over the period, will be funded through operational cashflow, debt, targeted asset sales, and a 2 billion British Pounds equity placing, according to the company.
"This Transformation for Growth investment 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," Chief Executive Martin Pibworth said.
SSE said it expects the investment to drive adjusted earnings per share growth of between 7% and 9% annually through 2030 and will target annual dividend growth of 5% to 10%.
Alongside the update, SSE reported half-year adjusted earnings per share of 36.1 pence, which it said was in line with expectations.
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