SSE produced a quarter more renewable energy in the latter part of 2024 than the previous year, amid a ramp-up in the amount of wind turbines it had running.
The energy giant said its 26% year-on-year output growth for the nine months to December 31 was because of “the impact from capacity additions and variable weather conditions”.
It comes as wind power provided more electricity than ever before last year across the UK, as the Government continued its push away from fossil fuels.
As we look to the opportunities presented by decarbonisation, our focus remains on capital discipline, strategic delivery and the efficient operation of our value-creating assets
Labour has said it wants to cut carbon emissions from the domestic power grid by 95% by the end of the decade, and has pinned much of its hopes on building more wind farms.
SSE is one of the key developers of wind turbines helping the Government do that, it said on Wednesday.
Chief financial officer Barry O’Regan said: “As we look to the opportunities presented by decarbonisation, our focus remains on capital discipline, strategic delivery and the efficient operation of our value-creating assets.”
The company remains in a strong position in a changing short-term market environment
SSE confirmed that it would build a new wind farm in the Scottish Highlands, called Strathy South, which is expected to be able to power about 220,000 homes when completed.
And it started generating power at its Yellow River onshore wind farm for the first time in December, a site in Ireland.
But profit forecasts for the year ending March 2025 were slightly below analyst estimates, at between 153p-to-163p per share.
SSE said the profit figure reflected “good” performance in the face of sometimes bad weather conditions, especially over the winter months.
While near-term headwinds may persist for the next six to nine months, SSE has a long runway of growth given its alignment with energy policy and the broader need for investment in renewables, energy transmission, and storage
John Moore, an analyst at the finance firm RBC Brewin Dolphin, said: “SSE has delivered another solid quarter in operational terms, but the share price has fallen nearly one-fifth from its peak in September 2024.
“That is a reflection of a general reduction in energy generation pricing and, in turn, assumptions on the returns that can be made on wind assets.
“Nevertheless, the company remains in a strong position in a changing short-term market environment.
“While near-term headwinds may persist for the next six to nine months, SSE has a long runway of growth given its alignment with energy policy and the broader need for investment in renewables, energy transmission, and storage.”
