SSE has revealed plans to consolidate the development, operation and ownership of its renewable energy assets within a new dedicated company called SSE Renewables.
The group said the restructuring will provide greater visibility to investors over its assets and earnings and allow it to strengthen its focus on its core businesses, including renewables.
SSE’s operational renewable assets include both onshore and offshore windfarms as well as hydro and pumped storage plants. The total capacity of the portfolio is expected to surpass 4GW by the end of March 2019, subject to the potential sale of stakes of up to 50 per cent in the Stronelairg and Dunmaglass onshore windfarms.
Jim Smith, currently managing director for generation at SSE, has been appointed as the managing director designate for SSE Renewables. He will lead the work to prepare for the creation of the new entity, which is scheduled to be completed by the end of the current financial year.
SSE chief executive Alistair Phillips-Davies said: “The creation of SSE Renewables is the latest step in our strategic goal to give greater focus to renewable energy, give investors greater visibility of assets and earnings in the future and give each of the businesses in SSE the best platform for success.
“Success will mean maximising SSE’s contribution to the ongoing decarbonisation of the electricity system and creating value for shareholders and society in a sustainable way, with a clear focus on maximising future growth opportunities.
“SSE has a unique portfolio of renewable energy assets and a valuable pipeline of future opportunities. The creation of SSE Renewables will build on SSE’s established skills in asset management and large capital project development and put the business in a strong position to evolve and succeed in a rapidly-changing electricity sector.”
SSE said the formation of the new company will additionally enhance its ability to raise finance for renewable energy projects and could create opportunities to expand into markets outside of the UK and Ireland.
The announcement was made alongside the release of SSE’s financial results for the six months to the end of September. The group reported a more than 40 per cent fall in underlying pre-tax profits to £246.4 million and a statutory pre-tax loss of £265.3 million.