Britain's SSE sets out $28 billion grid investment plan
LONDON, Dec 10 (Reuters) - UK utility SSE said on Tuesday its power network arm SSEN Transmission plans to invest at least 22 billion pounds ($28 billion) in grid infrastructure over a five-year period beginning in April 2026.
Britain aims to decarbonise its electricity sector by 2030 which will require a rapid increase in renewable electricity generation and huge investments to connect new projects to the power system.
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Network developers must submit project plans and expected costs under UK regulator Ofgem’s Revenue=Incentives+Innovation+Outputs (RIIO) programme.
Ofgem then decides whether to approve such plans and estimates the level of return on projects the developers can receive.
“It is now crucial that Ofgem backs that ambition with an investable and financeable framework, setting an appropriate cost of equity that recognises the unprecedented levels of investment required to decarbonise the economy," SSE Chief Executive Alistair Phillips Davies said.
SSE posted a 26% jump in half-year profit last month and said Phillips-Davies would retire next year after more than a decade in the job.
SSE owns 75% of SSEN Transmission while the other 25% is owned by the Ontario Teachers' Pension Plan Board.
(Reporting by Susanna Twidale; editing by Jason Neely)