UK (Parliament Politics Magazine) – The UK’s 2030 energy goals face a setback as SSE cuts renewable spending by £3bn, citing delays and shifting focus to grid upgrades.
As reported by The Guardian, a leading UK energy developer is slashing its renewable project funding, threatening the country’s ability to meet 2030 clean power targets.
SSE acknowledged it may miss its 2030 renewable targets after slashing its five-year investment plan by £3bn, now set at £17.5bn.
What did SSE’s chief say about delays to clean energy projects?
Alistair Phillips-Davies, SSE’s departing chief executive, cited “delays in policy and planning” alongside a “changing broader environment” as reasons for the cutbacks, raising new concerns over the government’s clean energy targets.
He revealed the company faced delays with two major Scottish renewable projects. These include the Coire Glas hydropower project in the Highlands and the extensive Berwick Bank offshore windfarm, awaiting approval since late 2022.
Before stepping down later this year, Phillips-Davies confirmed the company’s commitment to developing new offshore wind farm projects in UK waters.
He said the company will maintain its £8 million daily investment rate, urging for stable market conditions and lower risks to back its future objectives.
According to Phillips-Davies, proposals to replace Great Britain’s electricity market with zonal pricing, where prices are set by local supply and demand, are unnecessary. He stated, “While the market needs reform, it does not need zonal [pricing].”
He added,
“We’ve seen a whole swathe of the industry – all the main developers – come out firmly against zonal. It adds a whole lot of uncertainty and tens of billions of pounds to the cost of getting to net zero by 2030. It also introduces – tragically – a potential postcode lottery on people’s bills.”
How will delays to SSE’s wind farms affect the UK’s 2030 renewable goals?
These renewable energy projects are set to deliver power to approximately 9 million UK homes once operational. SSE has faced hold-ups advancing the second phase of the Arklow Bank offshore wind project off Ireland’s coast.
By 2030, the UK aims to double onshore wind, triple solar power, and quadruple offshore wind capacity, targeting a power system 95% free of fossil fuels.
How will SSE’s reduced renewable spending affect its financial performance?
SSE aimed to boost renewable energy output fivefold to 50 terawatt hours by 2030, supporting government clean energy targets. Renewable energy output rose 18% last year, reaching 13.3 TWh by March.
The firm’s reduced renewable investment will allow the energy giant to prioritize high-voltage transmission and distribution networks, which promise stable, regulated income.
UK clean energy 2030 target
Key Goal: Achieve a clean power system by 2030, forming the backbone of the UK’s net-zero transition.
Definition of clean power:
- Includes renewables (wind, solar, hydro), nuclear, and future tech like gas with carbon capture & storage (CCUS).
- Excludes energy-from-waste (EfW) and small combined heat & power (CHP) plants.
Target metrics:
- Annual Clean Power ≥ Total GB Consumption (in a typical weather year).
- Clean Sources to Supply ≥95% of GB’s Generation.
- Reduce Carbon Intensity from 171gCO₂e/kWh (2023) to <50gCO₂e/kWh by 2030.
Progress (2024):
- Clean sources provided 65% of UK generation (185 TWh), but 42% below total consumption.
- Carbon intensity: 171gCO₂e/kWh (2023), needing rapid reduction.
Challenges:
- Nuclear output declining (40.6 TWh in 2024; projected 15 TWh by 2030).
- Offshore wind is the largest clean source (26% of clean generation in 2024).
- Must triple offshore wind/solar capacity and double onshore wind by 2030.
Regional differences:
- Scotland already generates 92% clean power (exceeds consumption).
- England (57%), Wales (34%), NI (43%) lag.
Future demand:
- Expected to rise 11% by 2030 due to electrification (e.g., EVs, heat pumps).
Global context:
- UK trails leaders like Sweden (90% clean power) and Denmark (87%, mostly wind).
- Must accelerate variable renewables (wind/solar) to match NESO’s 77–82% target for 2030.