SSE and its networks arm SSEN Transmission are accelerating a multi‑billion‑pound programme of grid upgrades in the north of Scotland, underpinned by fresh government‑backed financing and major subsea cable contracts. The group said its latest performance shows it is “well placed to deliver on our ambitious investment plans while maintaining a strong balance sheet”.
Massive investment pipeline
SSE has reiterated that it is on track with a planned £33 billion investment programme this decade, with its regulated networks business at the heart of that spend. In its Q3 trading statement, the company highlighted “strong operational performance across our core businesses” and confirmed that capital deployment into electricity networks remains a central pillar of its growth strategy.
SSEN Transmission, which builds and operates high‑voltage infrastructure across the north of Scotland, is progressing a suite of once‑in‑a‑generation upgrades required to connect new offshore wind, onshore renewables and interconnectors. These projects sit within Ofgem’s Accelerated Strategic Transmission Investment framework and longer‑term LOTI schemes, described by the company as “critical to unlocking the clean electricity system the UK needs”.
New funding backed by UK and Swedish guarantees
To help finance the grid build‑out, SSEN Transmission has secured a package of long‑term, government‑backed facilities. The UK’s National Wealth Fund has agreed to provide an £800 million guarantee in support of a £1 billion, 12‑year bank facility that will fund upgrades to the transmission network in the north of Scotland, which the fund said would “support one of the largest grid upgrade programmes in British history”.
Alongside this, Sweden’s export credit agency EKN is guaranteeing a separate £500 million, 19‑year bank facility linked to Scottish network investment. The combination of UK and Swedish backing is designed to reduce financing costs and crowd in private capital, with SSEN Transmission saying the deals “demonstrate strong institutional confidence in our delivery plans”.
Major subsea links: Spittal–Peterhead and Western Isles
One of the flagship projects in SSEN Transmission’s portfolio is the Spittal to Peterhead subsea cable, a key north‑east reinforcement that will move large volumes of renewable power from Caithness and the Northern Isles towards demand centres and cross‑border interconnectors. NKT has been awarded a substantial contract to manufacture and install high‑voltage subsea cables for the link, with capacity also reserved for wider Scottish projects, including the Western Isles connection.
NKT described the work as “a significant contribution to the green energy transition in the UK” and said the projects would help integrate more offshore wind and other low‑carbon generation. These links form part of the final consents and delivery milestones that SSEN Transmission aims to secure and progress through to 2026.
Berwick Bank B strengthens offshore pipeline
On the generation side, SSE has strengthened its offshore wind pipeline with a 1.4 GW Contract for Difference award for the Berwick Bank B project in the Firth of Forth. The 20‑year contract, secured in the latest allocation round, comes with a strike price of £89.49/MWh (2012 prices) and has been described by the company as “another major step forward for our offshore wind portfolio”.
Berwick Bank B will add to SSE’s existing flagship offshore schemes, including the multi‑phase Dogger Bank project, by providing further large‑scale renewable output that will rely on timely delivery of transmission capacity. SSE has stressed that “co‑ordinated investment in networks and generation is essential if we are to deliver a secure, affordable and low‑carbon power system”.
Earnings guidance and outlook
Despite a challenging market backdrop, SSE has maintained its full‑year earnings per share guidance, indicating that profitability remains on track as it ramps up regulated and contracted investment. Barry O’Regan, Chief Financial Officer, said:
“Since announcing our £33bn investment programme to unlock the enormous growth opportunity presented by the transformation of electricity networks, our focus has been on accelerating investment and delivering the plan that will create compounding, long-term earnings and value for investors.
“We are encouraged by recent steps from government and regulators – from positive signals on the upcoming transmission price control to the success of AR7 and updated ambitions for offshore wind – which highlight the value of SSE’s integrated business model and will ultimately help deliver a cleaner, secure and more affordable energy system.”
With key consents still to be finalised on several Scottish grid schemes, 2026 is set to be a pivotal year for SSEN Transmission’s programme. The company says successful delivery will “support jobs, strengthen supply chains and play a vital role in meeting the UK’s net zero ambitions.”
