Generation and development
SSE is maintaining and investing in a diverse and sustainable portfolio of thermal and renewable generation plant. In moving towards a lower carbon generation mix, SSE will, by the end of the decade, transition its generation assets from a portfolio weighted towards gas and coal, towards one more weighted towards gas and renewables.
The practical application of this principle means that SSE currently owns or has an ownership interest in, around 10,643MW of capacity, which comprised at 31 March 2017:
- 5,305MW of gas-and oil-fired capacity (GB and Ire);
- 1,995MW of coal-fired capacity (with biomass co-firing capability); and
- 3,272MW of renewable capacity GB and Ire (including hydro, pumped storage, onshore wind and offshore wind).
UK Government Policy
The UK energy sector has seen significant levels of investment in recent years, made possible a by the supportive policy framework put in place by the UK Government and Devolved Administrations. In particular, the introduction of Contracts of Difference for low carbon technologies, the Capacity Market to help maintain security of supply, and the Carbon Price Floor; combine to provide the competitive, cost-efficient and stable policy framework investors require. SSE therefore believes it is important these mechanisms are maintained.
With an estimated £180 billion of investment in electricity infrastructure needed by 2030, the UK Government needs to set out a clear pathway for future low carbon investment post-2020.
UK CARBON FLOOR PRICE
SSE has consistently argued that putting a price on carbon emissions is a critical part of the UK’s energy policy. SSE considers the UK Carbon Price Floor as one of the most important policy tools the Government has to help industry continue to deliver reliable and lower-carbon electricity, in a cost effective way.
Currently there is only visibility on the Carbon Price Floor up to 2021. SSE believes that this should be extended out to at least 2025 to provide certainty to investors about the UK’s low carbon pathway.