SSE energy freeze to hit UK renewables projects

• 10 years ago (2014-03-27)
• Junior Isles

Europe 1061 Renewables 752

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UK energy giant SSE has announced huge cutbacks of its renewable generation plans across Scotland and England as a result of its energy price freeze, with millions of pounds worth of projects on hold or scrapped.

SSE announced this week that it would freeze UK domestic gas and electricity prices until 2016, but this is expected to cost 500 jobs at the Perth based company and has come at considerable cost to expansion of SSE’s renewables business in Scotland.

Recently announced plans for a major offshore wind farm on the Isle of Islay have been cancelled and SSE will be reducing its stake in the Beatrice wind farm in the Moray Firth.

SSE's tidal and marine energy projects are under review and the company’s focus on offshore wind will “narrow significantly”.

SSE is still seeking consent for its SeaGreen and Forewind wind farms planned at the Firth of Forth and Dogger Bank in the North Sea, but has no plans to develop them beyond this early stage until it has "achieved sufficient confidence in the viability of the wider offshore wind sector”.

“In offshore wind farm development, there are two major related hurdles that projects currently have to overcome. The first is the Levy Control Framework, which controls costs to customers from government energy policies – but which also means there is limited support for offshore wind. The second is cost – the future of offshore wind farm development depends on a sustainable and lower cost supply chain,” said Jim Smith, SSE’s managing director of generation development.

SSE also plans to cease development of projects in England, including its Galloper wind farm off the Suffolk coast. The company no longer believes it can receive a return on any investment in the project which would outweigh the costs of construction and operating the farm.

SSE has said it will be working with project partner RWE Innogy and other stakeholders to secure the “maximum possible value” for current investment interest in the offshore project.