22nd Jul 2021 09:58
(Alliance News) - SSE PLC on Thursday said its renewable energy production fell below target in the first quarter while progress continues for its disposals pipeline and construction projects.
Perth, Scotland-based SSE said its UK and Ireland project interests produced 403,000 megawatt hours of renewable energy in the three months ended June 30, about 19% below planned targets due to unfavourable weather conditions.
"This shortfall represents less than 4% of the annual forecast total output," the company added.
Shares in SSE fell 0.2% to 1,495.50 pence each in London on Thursday morning ahead of the firm's annual general meeting.
Total renewables output, excluding pumped storage, reached 1.7 million megawatt hours in the first quarter, the energy utility said - 19% below SSE's 2.1 million megawatt hour target and down 15% year-on-year from 2.0 million megawatt hours.
Conventional hydro generation output performed best in the first quarter, producing 593,000 megawatt hours, 15% below the firm's 696,000 megawatt hour target.
While offshore wind generation was the worst performer, falling 26% below target as it produced 290,000 megawatt hours of the 393,000 expected.
As output falls short of the firm's targets, SSE remains focused on its five-year dividend and business plans, construction projects and disposal pipeline
The energy firm said it "remains committed" to its five-year dividend plan to March 2023, and plans to provide guidance on full-year adjusted earnings per share later in the year.
Similarly, the firm restated plans to invest GBP4.1 billion between 2023 and 2038 in its SSEN Distribution business plan, published at the start of July. According to the company, the investment will increase SSEN's regulated asset value to over GBP6 billion from around GBP4 billion at the end of the current price control period.
Construction has continued at its major transmission and renewables projects, SSE said, including the world's largest offshore wind farm at Dogger Bank off the Yorkshire coast, Scotland's largest offshore wind farm at Seagreen and one of Europe's most productive onshore wind farms at Viking on Shetland.
"We have an enviable offshore wind pipeline which we are seeking to expand and diversify, options to develop new thermal and pumped storage hydro technologies that will be vitally important in the transition to net zero, and we see significant [regulatory asset value] growth potential in our regulated electricity businesses," added Finance Director Gregor Alexander.
Overall, the energy company expects capital expenditure and investment to total around GBP2 billion through 2021 and 2021, excluding project finance development expenditure refunds.
Meanwhile, SSE plans to streamline its business by disposing of "non-core assets". On June 30, SSE completed the sale of its contracting business, Aurelius, first announced in April.
The firm said it is currently on course to realise over GBP2 billion from non-core asset sales.
By Scarlett Butler; [email protected]
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