SSE lifts full-year earnings outlook again despite widening renewables shortfall

The group had already upped its earnings expectations to more than 150p a share in January.

SSE said the continued strong performance of its flexible generation plant to support security of supply has more than offset the lower than planned renewables output and associated costs.

The update comes as Energy Security Secretary Grant Shapps unveils the Government’s plan to “power up Britain”, with carbon capture technology and boosts for offshore wind forming the central plank of the new strategy.

SSE said it has “noted” the Government plans and will respond in “due course”.

It said it had produced 13 per cent less electricity than planned from its renewable sources as at the end of March as it fell further behind target, having been 10 per cent below plan at the end of last year.

Weather conditions have been unusually poor for renewable generation across Great Britain.

Even though Britain broke its previous wind power record in December, there were many days across 2022 when wind speeds dropped.

Last year, 36 per cent of Britain’s power came from renewables, with 41 per cent from gas. SSE has been upping output from its gas power plants in response to offset the drop from renewable sources. The group said it remains on course to deliver record investment of more than £2.5bn this year in renewable energy. Finance director Gregor Alexander said: “Our balanced business model has performed well in a volatile year, helping to ensure security of supply.

“At the same time, we are progressing multiple projects and adding to our pipeline as we deliver on our net zero focused electricity infrastructure strategy. This strong performance leaves us well positioned to continue our significant investment programme.”

SSE will update further on investment plans when it unveils full year results on May 24. SSE can trace its heritage back to The North of Scotland Hydro-Electric Board, which was formed with the Hydro Electric Development Act in 1943, delivering electricity to the Highlands for the first time. In the south, the former Southern Electricity Board was created in 1948 to distribute and supply electricity in southern England. SSE plc has its origins in these two public sector electricity supply authorities, with both organisations privatised in the early 1990s with the deregulation of energy.