SSE, a British utility, announces a $28 billion investment plan for grid infrastructure

The UK utility SSE announced on Tuesday that its power network arm SSEN Transmission will invest at least 28 billion dollars in grid infrastructure in a five-year span beginning April 2026.

Britain wants to decarbonise the electricity sector in Britain by 2030. This will require an increase in renewable energy generation, and massive investments to connect these new projects to power systems.

Network developers must submit project plans and expected costs under UK regulator Ofgem's Revenue=Incentives+Innovation+Outputs (RIIO) programme.

Ofgem will then determine whether or not to approve the plans, and estimate the amount of profit that the developers could receive.

SSE's Chief Executive Alistair Phillips Davies stated: "It is crucial that Ofgem supports this ambition by providing an investable and financing framework. This will include setting an appropriate equity cost that recognizes the unprecedented level of investment needed to decarbonise our economy."

SSE reported a 26% increase in its half-year profits last month. Phillips-Davies will retire in 2019 after serving for more than 10 years.

SSE is 75% owner of SSEN Transmission, while 25% belongs to the Ontario Teachers' Pension Plan Board.

(source: Reuters)