SSE, a leading energy company in the º£½ÇÊÓƵ, has cast doubt on achieving its 2030 renewable energy target, marking another setback for the government's net zero ambitions.
The Perth-headquartered giant announced plans to slash capital investment by up to £3bn within the next five years, blaming macroeconomic uncertainty and planning hurdles, as reported by .
Consequently, SSE now anticipates falling short of its objective to reach 50 terawatt-hours of renewable generation output by the end of the decade.
"SSE Renewables has seen a significant growth in installed capacity and output over the last few years, however the changing macroeconomic environment and wider delays to planning processes mean the group has reduced its near-term capital investment expectations," the company explained.
"As a result, it is unlikely to meet its ambitious goal."
Net zero challenges
The challenges to net zero targets have been further highlighted by recent industry developments. Just days prior to SSE's announcement, Danish energy titan Orsted halted its plans to construct the 2.4GW Hornsea wind farm, one of the º£½ÇÊÓƵ's largest, due to insurmountable cost pressures.
This follows Drax's earlier decision this month to put a hold on expanding its Scottish hydro-power plant, and ABF's move to idle a bioethanol facility in Yorkshire, citing government actions as detrimental, all of which point to potential complications in Energy Secretary Ed Miliband's aggressive net zero strategy.
Shadow Energy Secretary Andrew Bowie has voiced strong criticism over the Hornsea project's discontinuation, stating it "took the Ed Miliband – already mad – target of getting to clean power 2030, and left it in tatters.
"There is absolutely no way that without Hornsea they can make clean power 2030... Ed Miliband needs to revisit whether or not clean power 2030 is still realistic," Bowie remarked to City AM.
Bowie also suggested that Ørsted's decision "raised questions" about the efficacy of the contracts for difference process, a scheme established by the previous government to fund renewable energy infrastructure.
SSE hikes dividend
Despite a pre-tax profit drop of 26% to £2bn for the year ending March and a 17% rise in net debt to £9.5bn, SSE declared it could raise its full-year dividend to shareholders by 7% to 64.2p.
The company reported completing its 443 megawatt Viking wind farm and associated high voltage cabling, representing an investment exceeding £1bn.
SSE also confirmed ongoing progress on its 3.6 gigawatt Dogger Bank offshore wind farm, with the first phase expected to be finalised in the latter half of 2025.
Chief Executive Alistair Phillips-Davies stated: "We have met our financial goals for the year and evolved our investment plans to reflect the changing world around us – leaning into the opportunities presented in networks and redoubling our capital discipline across our energy businesses."
SSE unveiled a revised capital expenditure plan, committing to invest £17.5 billion over the next five years.
