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(Bloomberg) — SSE Plc will raise about £2 billion ($2.6 billion) in new shares to help finance a £33 billion drive to upgrade its grids and boost renewable energy.
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About 80% of the planned investment will be spent on upgrading and expanding power grids in the UK. Britain’s networks need to keep up with the rapid expansion of renewables, the push to electrify industries and expand artificial intelligence.
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The equity raise is another sign that Europe’s big utilities are turning to investors to fund large-scale grid and renewables projects. Last month, Denmark’s Orsted A/S raised 60 billion Danish kroner through a rights offering — the largest by a European energy firm in over a decade.
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“Our world is rapidly electrifying, and we need to build, connect and transport ever greater volumes of homegrown power to homes and businesses to power the digital age,” Martin Pibworth, SSE’s chief executive officer, said in the statement.
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About £27 billion of the total plan will go toward electricity networks and the remaining £6 billion will go be spent on building out renewables assets, including wind farms and flexibility assets such as batteries and gas plants.
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The company reaffirmed its financial guidance, saying it remains on track to deliver adjusted earnings per share of 175 to 200 pence in 2026/27 based on calculations using the current share count. When new shares are issued due to the capital raise, earnings per share may be lower as the number of shares increases and dilutes earnings.
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The company’s capital investment in the six months through Sept. 30 rose 22% to £1.6 billion, covering spending on its grid.
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