Delivering today while investing in tomorrow's energy
While our business model ensured our financial resilience in 2023/24, our ultimate focus is on the power system of tomorrow. Helping to build a renewable and flexible energy system is the most important contribution we can make to a sustainable future.
A year of strategic acceleration
“As the task of decarbonisation becomes ever more urgent in our warming world, so does the demand for what SSE has to offer in building a clean, secure and affordable energy system. I’m pleased to say that in 2023/24 we were able to go further and act faster as we responded to that demand with an acceleration of plans and projects.”
Alistair Phillips-Davies
Chief Executive, SSE plc
Chair's statement
"While our business model ensured our financial resilience in 2023/24, our ultimate focus is on the power system of tomorrow. Helping to build a renewable and flexible energy system is the most important contribution we can make to a sustainable future."
Sir John Manzoni
Chair, SSE plc
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Our strategy in action
An unwavering focus on developing, building, operating and investing in clean energy infrastructure is the driving force behind the long-term value we create for shareholders and society. Here are the six key areas where you can see our strategy in action.
Transmission
To move to a cleaner energy system, we need infrastructure that brings renewable energy to those who need it. Our £20bn investment in Scotland will enable over a fifth of the UK’s 50GW offshore wind goal and help power millions of homes.
Renewables
Large capital projects that spur renewable electricity generation are crucial for building the energy system of the future. In 2023/24, we made significant progress with off- and onshore windfarms and battery energy storage systems working with contract partners, stakeholders and communities.
Distribution
As the electrification of heat and transport gathers pace, we’re becoming an increasingly vital bridge between low-carbon generators and consumers. Through price controls, forecasting and planning, we’re supporting the design and implementation of a smart, flexible electricity system fit for future needs.
Green finance
We’re the UK’s largest issuer of Green Bonds, increasingly popular with investors looking to channel finance into infrastructure to help meet net zero targets. We issued two new bonds in 2023/24, taking the value of Green Bonds issued by the Group to £3.7bn.
Winning contracts
The critical role of our assets in the wider energy system was underlined by a string of capacity auction successes. We secured new contracts in wind, hydro, storage and thermal in 2023/24 – underpinning our stable index-linked earnings and supporting our business model.
Climate action
We’re working with political stakeholders in the UK and Ireland to bolster energy security, create green jobs and deliver our NZAP Plus programme. While calling for more ambitious global policy, we support the COP28 pledge to triple renewable energy capacity and double energy efficiency by 2030.
Performance highlights
We met our financial objectives in 2023/24, with our diversified business mix offsetting the impact of weather and market conditions. We invested £2.5bn in infrastructure for net zero and continued to focus on our number one value: safety. Our world-class project pipeline and strong balance sheet puts us on course for our 2026/27 growth targets.
Group operating profit/loss
Business Unit overview
Governance
When making the decisions that underpin SSE’s long-term success, the Board considers our purpose, vision and strategy as well as environmental, political, regulatory and market developments. Here we highlight our Board composition and key decisions made during the year.
Principal decisions 2024
- Powering accelerated growth in the transmission network
- Delivering value through volatility in Renewables
- Delivering flexibility in the net zero transition
Board highlights
Hearing and responding to employees
The Board is committed not only to ensuring everyone has a voice but taking action in response to feedback. Board members discussed with employees the key topics raised in our all-employee survey: strategy and the drive to net zero. And sessions on culture involved speaking with managers, new joiners and wider employees about leading on values, attracting talent and ways of working.
Overseeing actions on safety
The safety of the people who work for and with us is at the top of every Board agenda. This year, the Board was pleased the total recordable injury rate (TRIR) for our employees exceeded expectations, but was disappointed with the increase in TRIR for contractors. We remain committed to improving our safety performance across our entire workforce.
Strategy and delivery
The Board’s strategic work this year had three main focal points:
1. Assessing the impact of external developments such as energy market conditions and clean energy policy developments on our agreed capex plan (the NZAP Plus)
2. Reviewing the progress of NZAP Plus within the context of stakeholder needs
3. Debating options for future growth.
Reaffirming investor support for NZAP Plus
In line with investor feedback on our strategic and investment plans, we announced the enhanced NZAP Plus this year. This accelerates the original programme by 12 months and upgrades its targets, ambitions and investments. Investor support for our net zero ambitions and actions was reinforced by an AGM vote which was almost 98% in favour of our Net Zero Transition Report.