SSE’s renewables business recorded lower than expected generation figures for the three months to June this year due to calm weather conditions.
Output from onshore and offshore wind was 766GWh and 213GWh, respectively, for the period, 15% lower than planned due and down from the 854GWh and 254GWh for 2017, the utility said in a trading update.
The performance was due to “poorer than average” conditions and has contributed to adjusted operating profit for the three months that will be £80m lower than budgeted for.
SSE said the financial performance may have knock-on impact on full-year results
Hydro output was meanwhile higher in the three months to June this year than in the same period last year due to “higher snow melt”, however, was around 20% lower than envisaged.
“In addition to dry, still and warm weather, the financial year so far has also been characterised by persistently high gas prices. All of this has resulted in a higher cost of energy, lower than expected output of electricity from renewable sources and lower volumes of energy being consumed,” said the utility.
Chief executive Alistair Phillips-Davies said he is “pleased” with progress of “key projects” such as the 588MW Beatrice wind farm off Scotland, where two of 84 Siemens Gamesa 7MW turbines have been installed.
“Investment of this kind supports our strategic goal of creating value in a sustainable way, including remunerating shareholders for their investment, and we are strongly committed to delivering the five-year dividend plan we set out in May.”
The 228MW Stronelairg wind farm in Scotland and the Beatrice project remain on course for 2019 completions and are part of a capital investment programme totalling around £6bn to run until 2023.
Image: SSE
Weather leaves SSE cold
By EBS