SSE Renewables has reported a surge in profitability in the first half of 2023.
The developer reported an adjusted operating profit of £86.6m for the six-month period, compared to £15m at the same time last year.
SSE told shareholders that the profitability in renewables reflects higher hedged prices combined with lower hedge buybacks required, albeit with unfavourable weather conditions leading to a shortfall against planned output.
Onshore and offshore wind revenues achieved higher average hedge prices whilst incurring lower levels of costs associated with hedged output buy-backs in a less volatile market.
Output for the period was driven by exceptionally still and dry weather conditions, particularly in the first quarter of 2023/24.
There was additional but delayed capacity as Seagreen offshore wind farm (pictured) commissioned left SSE Renewables’ output around 0.8TWh or 19% behind planned levels year to date (representing around 7% of the full year volume budget) but broadly in line with the prior period.
During the first half of 2023, the renewables division generated 3723GWh, including pumped storage, compared to 3725GWh at the same time last year.