Energy firm promises £22 billion investment in ‘critical grid infrastructure’

Bosses at electricity firm SSEN Transmission have set out a £22 billion, five-year plan that they say will help the UK towards its clean energy targets as well as supporting tens of thousands of jobs.

The company, a subsidiary of energy giant SSE, is submitting plans to the energy regulator Ofgem in which it pledges to spend at least £22 billion on its business plan for the period April 2026 to March 2031.

That includes £16 billion for “strategic investments” already approved by Ofgem as part of work to improve the UK’s transmission network.

But SSEN Transmission says the potential for an additional £9.4 billion of investment could take overall spending over the five-year period to £31.7 billion.

The company insisted its plans could help the UK towards its net-zero targets, and also assist with the UK government’s clean energy target, which sets the goal of having at least 95% of electricity coming from low-carbon sources, such as renewable power, by 2030.

And if the additional spending goes ahead, it said investment of £31.7 billion would help support up to 37,000 jobs across the UK, including 17,500 in Scotland and 8,400 in the north of Scotland.

According to SSEN Transmission, its plans would contribute £15 billion to the UK economy, with £7 billion of this in Scotland, including £3 billion in the north of Scotland

Managing director Rob McDonald said the business plan “sets out an ambitious, deliverable blueprint, to unlock the unprecedented levels of investment required to deliver UK and Scottish net zero and energy security targets, including the clean power by 2030 mission”.

He added: “In what is one of the largest investment programmes of all time in Scotland, this plan will also support tens of thousands of jobs across the country, turbo-charging the economy and delivering a transformational and lasting legacy for communities, the economy and nature.”

However, the power firm stressed that the success of its plan would depend on having a “financial framework commensurate with the scale of the task and capable of attracting the unprecedented levels of investment needed to deliver the clean energy transition and protect future energy consumers”.

Alistair Phillips Davies, the chief executive of SSE plc, stressed the need to “deliver a cleaner, more secure and affordable electricity system for current and future generations”.

He stated: “With a new national mission to deliver clean power by 2030 in order to boost energy security and protect future consumers, unlocking the right level of investment during the next price control will be key.

“We’re setting out today the extent of our ambition and commitment; 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 and deliver a clean power system.”