Scottish Power reports earnings boost from offshore wind

Scottish Power reported strong first quarter earnings growth of over 60 per cent on the year for its renewables business, driven by better than expected wind energy output.

Its parent company Iberdrola said the UK business saw Q1 earnings rise 61 percent compared to the first quarter of last year to €149.1 million. The company attributed this to higher renewable energy output which grew by 15 per cent to 1.25GWh in large part due to the “standout performance” of its West of Duddon Sands offshore wind project.

The offshore wind farm exceeded its expected output, generating electricity at 55.8 per cent of its theoretical maximum compared to a load factor of 32.8 per cent from the onshore wind portfolio.

Iberdrola says this shows clear evidence that its multi-billion pound investment in offshore wind is delivering value.

“Offshore wind is now coming into its own with the power produced from the new windfarm at West of Duddon Sands ahead of expectations in the first quarter of this year,” said Scottish Power chief corporate officer Keith Anderson.

“This shows the potential of offshore wind now that we are able to use larger turbines and better technology, which we will advance further with other new offshore projects, notably the 714MW East Anglia One windfarm in the North Sea,” Anderson added.

Earnings growth was seen across Scottish Power’s business units with its generation and supply arm reporting growth of just over 17.5 per cent while earnings from its networks business grew over 22.5 per cent compared to the Q1 2014 results.

The generation and supply business saw earnings rise to €232.6 million in Q1 in part helped by the weakened euro. But in Sterling the earnings growth was just 6 per cent to £173.5 million in Q1 following an 8.2 per cent rise in gas demand due to colder weather than seen last year.

Scottish Power’s networks business delivered earnings in Q1 of €309.8 million, up from €252.5 million, Iberdrola said.