finance

Power network sets out £5 billion plan for move towards net zero



SSEN Transmission has set out a plan to cut greenhouse gas emissions by a third by 2026 in its new business plan for the north of Scotland submitted to energy regulator Ofgem.

The company also promised £100 million in efficiency savings from innovation in the high voltage electricity network it runs in the north of Scotland and islands.

It said it would take an estimated £5 billion of investment to meet its net zero target but that it was only prepared to commit £2.4 billion until there was certainty over regulation to be introduced during the Ofgem price control period beyond 2021.

Rob McDonald, managing director for SSEN Transmission, said: “With our network region home to some of the UK’s greatest resources of renewable energy we have a critical role to play in the fight to prevent the worst effects of climate change, connecting up more renewable energy and transporting it across the country.

“We believe our Business Plan represents a balanced package that makes a powerful case for the vital investment needed to deliver a pathway net zero.  It will also lead to improved network reliability, at an affordable cost to consumers, whilst also providing a fair return to investors.”

The Business Plan, titled A Network for Net Zero , covers the period from April 2021 to March 2026 and follows consultation with national and local stakeholders as well as SSEN Transmission’s independent expert RIIO-T2 User Group. It estimates its average cost to the GB consumer over the RIIO-T2 period will be around £7 a year.

Ofgem’s current controls for gas and electricity transmission (RIIO-T1) runs until 31 March 2021.

The plan for SSE Transmission – operating in the north as Scottish Hydro Electric (SHE) Transmission – aims to:

• Transport the renewable electricity that powers 10 million homes

• Aim for 100% transmission network reliability for homes and businesses

• Every connection delivered on time

• One third reduction in greenhouse gas emissions

• £100 million in efficiency savings from innovation



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