Investment case
SSE’S INVESTMENT CASE
- UK-listed energy group focused on regulated electricity networks and renewables sources of electricity
- Strategy to create value in the transition to net zero through developing, operating and owning green infrastructure
- Commitment to remunerate shareholders' investment through dividends, with annual DPS targets set to 2023
- Strategy underpinned by strong environmental, social and governance focus
STRATEGIC FOCUS ON REGULATED NETWORKS AND RENEWABLES
EXECUTING OUR STRATEGY

Developing, operating, owning
applying world-class skills and experience to the low-carbon infrastructure needed now and in the future

Creating value for shareholders and society,
earning profit from successful development, operation and responsible ownership of low-carbon assets; while delivering inclusive services, contributing to inclusive economic growth and sustainable jobs

Delivering in a sustainable way
being purpose-led, adopting four fundamental business goals aligned to the UN’s SDGs
OPPORTUNITIES THROUGH THE LOW CARBON TRANSITION
UK is the first major economy to legislate for ‘net zero’ emissions
- Electrification of transport and heat
- Maximising renewable energy sources key to achieving target
- Central enabling role for electricity networks
Irish Government supports adoption of a net zero target by 2050
- Aim for >70% of Irelands electricity from renewables by 2030
- Commitment to carbon pricing as a core policy measure to reduce greenhouse gasses
SIGNIFICANT INVESTMENT OPPORTUNITIES IN THE FIVE YEARS TO FY25
£7.5bn capex plan across the five years to 2025*
Transmission
- Business Plan includes £2.4bn Totex across the RIIO-T2 price control (FY21 – FY26)*
- Could take RAV from £3.5bn to £5bn by 2025/26, excluding island links
Distribution
- Leadership position in innovation
- Aiming for strong finish to RIIO-ED1 (to FY23)
*subject to Ofgem final determinations
Offshore
- 1,075MW Seagreen Wind Farm (SSE share 49%)
- 3,600MW Dogger Bank Wind Farm (SSE share 50%)
- £1.5bn equity investment net of project finance refunds across both projects
Onshore
- 443MW Viking Wind Farm
- 100% owned, £580m investment
FINANCIAL STRENGTH
Net debt/EBITDA range
- Maintain net debt/EBITDA ratio at the lower end of a 4.5 to 5 times range from 2021-2025
Credit rating
- Maintain credit ratios comfortably above those required for investment grade
Sharpening focus on core business
In progress
- Gas Production Assets
- Contracting
To be initiated
- Walney Offshore Wind Farm
- Multifuel
Further options
- Partnering in Networks and Renewables
- New debt issued in April & June 2020
- Average debt maturity 6.5 years
- £1.5bn cash and committed facilities
Refinancing requirements
- No new financing requirement within the next two years, assuming £2bn disposals
2020/21 AND BEYOND
Download our full Investment Case here.
SSE Investment Case 22 July 2020