LONDON - SSEN Transmission, a subsidiary of SSE (LON:SSE) plc, has outlined a significant investment plan aimed at enhancing the UK's grid infrastructure. The company intends to invest over £22 billion during the RIIO-T3 regulatory period, from April 1, 2026, to March 31, 2031, with the potential for the total expenditure to reach approximately £31.7 billion.
The investment plan, submitted to Ofgem, the energy regulator, is designed to deliver on the UK and Scottish governments' net zero and energy security targets, including the UK Government's Clean Power by 2030 ambition. The plan focuses on three main goals: ensuring reliable energy with zero interruptions, enabling clean power to meet 20% of Great Britain's demand, and creating a lasting legacy that benefits local communities, the economy, and nature.
The proposed investment is one of the largest private investment programs in Scotland's history and is expected to drive economic growth by supporting up to 37,000 jobs across the UK, with 17,500 in Scotland. Independent (LON:IOG) economic analysis by BiGGAR Economics suggests that the full investment could add £15 billion in value to the UK economy, £7 billion of which would be in Scotland.
The plan also includes community benefit funding expected to exceed £100 million for projects during the RIIO-T3 period and the development of at least 1,000 new homes in the north of Scotland.
Rob McDonald, Managing Director of SSEN Transmission, emphasized the ambition and deliverability of the plan, which seeks to unlock unprecedented levels of investment required for the UK and Scotland's energy and climate goals. He highlighted the plan's potential to turbo-charge the economy and deliver transformative benefits for communities and the environment.
Alistair Phillips Davies, Chief Executive of SSE plc, underscored the importance of the RIIO-3 price control period and the necessity for Ofgem to provide an investible and financeable framework that supports the required level of investment.
Ofgem is expected to launch a Call for Evidence on December 18, 2024, followed by Draft Determinations in June 2025 and Final Determinations in December 2025.
The information in this article is based on a press release statement from SSEN Transmission.
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