SSE expects to deliver cash proceeds of over £1bn from “value-creating” asset disposals, including three wind farms in Scotland, totalling over 800MW.
In a recent trading update, the energy company said the sale of stakes in the Clyde, Stronelairg and Dunmaglass wind farms, as well as SSE Telecoms and Indigo Pipelines, have contributed to the figure.
SSE expects that it will deliver for 2018/18 capital and investment expenditure of around £1.7bn and net debt and hybrid capital of around £9.5bn on 31 March 2019, taking account of disposals, which is down from the previous estimate of £9.8bn.
The 522MW Clyde facility (pictured), featuring 206 turbines, is one of Europe’s biggest operational wind farms and was owned as a joint venture partnership between SSE, Greencoat UK Wind and GMPF & LPFA Infrastructure.
In February, SSE signed agreements for the sale of 49.9% of the 228MW Stronelairg wind farm to Greencoat UK Wind, part of a £635m deal in which the latter acquired a 49.9% stake in the 94.05MW Dunmaglass project as well.
SSE finance director Gregor Alexander said: “We are making encouraging progress in our core businesses of regulated energy networks and renewable energy, complemented by flexible thermal generation and business energy sales.
“Our disposals and stake sell-downs have generated over £1bn in proceeds, demonstrating our ability to create value for shareholders from developing and operating world class assets.
“This year has clearly presented significant challenges and uncertainty in the operating environment persists, but our optionality and agility mean we are well placed to deliver on the strategy we presented last year to create value for shareholders and society from developing, owning and operating energy and related infrastructure in a sustainable way, as well as delivering against our five-year dividend plan.”