SSE's CEO, Alistair Phillips-Davies, highlighted that increased oil and gas drilling in the U.S. under President Trump could relieve some renewable energy supply chain pressures for the UK, yet restrict the supply of gas-fired plant components.
Trump’s election win is expected to favor U.S. oil and gas, slowing the renewable buildout previously supported by Biden’s $369 billion clean energy stimulus.
As the UK government advances its decarbonization targets, it foresees a minor yet strategic role for gas in the 2030 energy mix. However, as Phillips-Davies noted, achieving the UK’s ambitious goals for offshore wind, onshore wind, and solar growth will be a substantial challenge. Labour plans to quadruple offshore wind capacity, double onshore, and triple solar by the decade’s end.
Despite setbacks, SSE remains committed to renewable projects, though industry supply chain issues have impacted profitability and project timelines. Delays on the Dogger Bank A wind farm, caused by turbine installation challenges with GE Vernova, have pushed completion into the latter half of next year. Together with its sister sites, Dogger Bank is set to deliver 3.6 GW of capacity.
In the six months ending in September, SSE recorded a 24% increase in renewable generation, pushing adjusted operating profits to £860 million and pre-tax profits to £846 million, up from £615 million a year prior. However, its thermal generation segment saw a £43.8 million loss due to decreased demand for gas-fired plants.
Rising European gas prices, spurred by Asian demand, declining storage levels, and geopolitical tensions, contributed to SSE shares slipping 0.5% to £16.91 in London. Phillips-Davies, who plans to retire after 11 years as CEO, will remain until a successor is appointed for a smooth transition.
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