UK’s Biggest Utility Set to Miss Its 2030 Green Power Target

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(Bloomberg) — SSE Plc said it is unlikely to meet its 2030 renewable energy target, citing a difficult market environment, policy uncertainty and delays to grid connections.

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The warning underscores the challenges facing the UK government’s goal of largely decarbonizing the power system by 2030 to cut emissions and lower bills, even as major utilities continue to invest billions of pounds in both renewables and networks.

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The firm with the most green power capacity in the UK had planned to generate 50 terawatt-hours of renewable electricity annually by the end of the decade, a target it has called “ambitious.” However, in its Thursday earnings statement SSE said that target is now unlikely to be achieved, while also pointing to delays affecting some UK onshore wind projects.

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Grid capacity is emerging as one of the biggest obstacles to the energy transition. Significant investment is needed both to connect new wind farms and to expand the electricity network across the country. At the same time, local opposition to new infrastructure projects is creating further delays.

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For example, SSE said approval for its Cambushinnie substation in Scotland was withdrawn following a legal challenge and will now be reconsidered later this summer.

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The company also took a £155.8 million ($209 million) charge on two Scottish wind farms after delays connecting them to the electricity network pushed back construction timelines.

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In another setback for clean energy ambitions, SSE said it had paused its standalone hydrogen production projects because of delays to government support for the technology. The company said it will instead focus on hydrogen infrastructure in the Humber region and future hydrogen-to-power projects.

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The retreat from some renewable targets comes even as SSE continues to advance its offshore wind developments. Turbine installation at the 1.2-gigawatt Dogger Bank A offshore wind farm was completed earlier this year, with full commissioning expected later in 2026. The project’s second phase, Dogger Bank B, has already installed 20 turbines.

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SSE also reported its lowest earnings since 2022. Adjusted operating profit fell 8% to £2.24 billion in the year through March, missing analyst estimates.

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Profit at the company’s distribution business dropped 54% from a year earlier because the previous result benefited from a temporary inflation-linked increase in allowed revenues. 

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SSE’s shares, which have gained 11% this year, traded little changed in London. 

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(Updates with details, comments on 2030 goal)

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