Investment case
SSE’S INVESTMENT CASE
- UK-listed integrated energy group focused on regulated electricity networks and renewable energy with flexible generation
- Balanced business model offering strong performance in volatile market conditions, with significant inflation protection through index-linked revenues and limited index-linked debt
- Transmission and Distribution net RAV in GB of >£8bn, with double digit RAV growth required to enable net zero
- Existing Renewables portfolio of c.4GW, secured pipeline >15GW, with European Onshore Wind platform and developing options to enter new international markets
- Flexible Thermal assets provides stability to system and security of supply, with increasing decarbonisation options
- Commitment to sustainability through 1.5 degree science based carbon targets and leading Just Transition strategy
Key targets and ambitions | NZAP (previous) | NZAP Plus (new) |
Five-year targets: | to 2025/26 | to 2026/27 |
- Capital investment(net) | £12.5bn | £18.bn |
- Adjusted earnings per share CAGR | 7 - 10% From 2020/21 87.5p | 13 - 16% From 2021/22 94.8p |
- Dividend growth beyond 2023/24 60p rebase | At least 5% to 2025/26 | Between 5 - 10% to 2026/27 |
- Net debt / EBITDA expectations | Below 4.5x | Between 3.5 - 4x |
- Net installed Renewable capacity | Around 8GW | More than 9GW |
- Net Networks RAV | >£9bn | £12 - 14bn |
Ten-year ambition: | to 2030/31 | to 2031/32 |
- Net installed Renewable capacity | >13GW | >16GW |
- Net installed low-carbon flexible capacity | >3GW* | >2GW |
- Net Networks RAV | >£14bn | >£20bn |
- *included Distributed Energy capacity from Solar & Battery, now included with Renewable capacity ambition