SSE’s Transmission business sets out plans to invest at least £22bn in mission-critical grid infrastructure

SSE’s electricity transmission business will today submit to the energy regulator, Ofgem, its plans to deliver at least £22bn in mission-critical grid infrastructure through its Business Plan for the RIIO-T3 price control period, from 2026 to 2031.

‘Delivering a Network for Net Zero: A Pathway to 2030’

SSEN Transmission, the 75%-owned subsidiary of SSE plc, has published its Business Plan for the RIIO-T3 period, which is underpinned by three ambitious goals:

• Reliable Energy, with an ambition for zero interruptions in electricity supply to homes and businesses due to the north of Scotland transmission network.
• Clean Power, with the north of Scotland transmission network having the capability to meet 20% of GB demand for clean power.
• Our Legacy, to drive investments in the energy transition that delivers transformative lasting benefits for local communities, the economy and nature.

The plan sets out a clear and evidence-based need for a potential known total expenditure of around £22.3bn over the RIIO-T3 period. This compromises:

• a baseline total expenditure of around £6bn; and
• around £16bn of committed strategic investments that have already received approval of need from Ofgem through its ASTI framework and LOTI Uncertainty Mechanisms.

The business has also set out the potential for an additional £9.4bn of potential future expenditure, which could bring the total investment over the RIIO-T3 period to around £31.7bn.

The timing, progression and scale of this additional potential expenditure remains subject to a range of external factors which include regulatory and planning approvals; the outcome of Government policy decision and ongoing industry reform; securing the supply chain; and, critically, an investible financial framework.

Enabling Government targets and driving economic growth

These investments are critical enablers of UK and Scottish Government climate change and energy security targets, delivering a pathway to net zero emissions and helping underpin the UK Government’s Clean Power by 2030 ambition.

It represents one of the largest ever private investment programmes in Scotland and will act as a major driver of jobs and economic growth across the country.

Economic analysis, which has been independently peer reviewed by leading consultancy, BiGGAR Economics, forecasts that the potential £31bn+ total investment could support up to 37,000 jobs across the UK, 17,500 of which would be in Scotland, with 8,400 in SSEN Transmission’s operating area in the north of Scotland.

The investment programme could also add £15bn in value to the UK economy, £7bn of which would be in Scotland, and £3bn of that in the north of Scotland.

Further to that, the investment will provide significant local benefits, including community benefit funding, which, based on draft UK Government guidance, is expected to deliver well in excess of £100m in funding for projects being taken forward throughout the RIIO-T3 period.

The investment will also support the development of at least 1,000 new homes across the north of Scotland, creating a legacy in the communities that will host construction workers by delivering housing that will support local need once projects are completed.

Alistair Phillips Davies, Chief Executive of SSE plc, said:

“The RIIO-3 price control comes at a critical juncture in the effort to deliver a cleaner, more secure and affordable electricity system for current and future generations.

“With a new national mission to deliver clean power by 2030 in order to boost energy security and protect future consumers, unlocking the right level of investment during the next price control will be key.

“We’re setting out today the extent of our ambition and commitment; it is now crucial that Ofgem backs that ambition with an investable and financeable framework, setting an appropriate cost of equity that recognises the unprecedented levels of investment required to decarbonise the economy and deliver a clean power system.”

Rob McDonald, Managing Director of SSEN Transmission, said:

“Our RIIO-T3 Business Plan sets out an ambitious, deliverable blueprint, to unlock the unprecedented levels of investment required to deliver UK and Scottish net zero and energy security targets, including the Clean Power by 2030 mission. 

“In what is one of the largest investment programmes of all time in Scotland, this plan will also support tens thousands of jobs across the country, turbo-charging the economy and delivering a transformational and lasting legacy for communities, the economy and nature.

“We now look forward to working constructively with Ofgem, Government and wider stakeholders to ensure the future regulatory framework secures the investment required to support the nation’s ambitious goals and delivers the vast economic opportunities the clean transition presents."

For more detail, please visit SSEN Transmission’s dedicated Business Plan website.