SSE unveils £33bn plan to upgrade UK electricity networks with £2bn investor backing

Energy giant SSE has announced a landmark £33 billion investment programme to modernise the UK’s electricity infrastructure, describing it as a “once-in-a-generation opportunity” to transform how power is generated, transmitted and distributed across the country.

The Perth-based company said the five-year plan, running to 2029–30, will see it raise £2 billion from investors through a share placing and generate a further £2 billion from targeted asset sales. The move is designed to fund an ambitious expansion of its electricity networks and renewable energy capacity.

Shares in the FTSE 100 group surged almost 12 per cent after new chief executive Martin Pibworth unveiled the plans, bringing clarity to how the firm intends to finance its capital commitments and marking a bold start to his leadership.

Under the new strategy, SSE’s annual investment will treble to £33 billion, with about 80 per cent channelled into regulated electricity networks, which will now form the backbone of the business. The company said it would commit £22 billion to upgrading high-voltage transmission cables across the UK — infrastructure described as “critical to connecting renewables and removing existing constraints within the electricity grid.”

A further £5 billion will be spent on strengthening lower-voltage regional distribution networks in Scotland and southern England. The remaining 20 per cent of the budget will be split between £4 billion in renewables — primarily wind and hydro power — and £2 billion in flexible gas generation and other business areas.

Pibworth said the strategy was designed to help deliver a cleaner, more secure and more affordable energy system for the UK, while also stimulating economic growth.

“Our plans are built on a once-in-a-generation opportunity to upgrade the UK electricity network,” he said. “The accelerated investment is underpinned by secure UK government regulatory frameworks and will unlock much-needed growth across the wider economy, supporting thousands of jobs over the course of the plan.”

The company said over half of the funding would come from operational cash flow, with a third financed through borrowing, leaving only around 10 per cent to be covered by equity raising and asset sales. Analysts welcomed the clarity, noting that the scale of the fundraising was smaller than many had anticipated.

Ahmed Farman, an analyst at Jefferies, said: “The new plan brings clarity on the balance sheet and the company’s growth outlook. The £2 billion equity raise is towards the lower end of the scenarios previously discussed.”

SSE operates transmission cables in the north of Scotland and distribution networks in both Scotland and central southern England. It also owns and manages a portfolio of wind farms, hydroelectric stations and gas-fired power plants.

The announcement coincided with the release of SSE’s half-year results, which showed adjusted pre-tax profits down 28 per cent to £521.5 million for the six months to the end of September. The company cited weaker performance from its renewables arm, reflecting “less favourable weather and lower hedged prices,” with hydro output reduced after an unusually dry summer in Scotland.

Despite the short-term dip in profits, SSE’s multibillion-pound investment marks one of the most significant commitments yet to upgrading Britain’s electricity networks — a move analysts say will be essential to achieving national net zero targets and unlocking future renewable capacity.