Power firm’s offshore energy flows free
SCOTTISH POWER’s renewable energy division has posted a big increase in first quarter earnings, which the company said showed the hefty investment it has made in offshore wind power is paying off.
The Glasgow-based company said its UK renewables arm achieved €149.1 million (£107m) earnings before interest, tax depreciation and amor tisation (EBITDA) in the first three months, up 61 per cent on the €92.7m achieved in the same period of 2014.
Production also increased by 15 per cent annually, to 1,249 megawatt hours.
Scottish-Power, owned by Iberdrola of Spain, highlighted the contribution made by the £1.6 billion West of Duddon Sands windfarm off shore at Barrow in Furness. This was completed in October.
The 389 megawatt facility generated 55.8 per cent of the theoretical maximum it was capable of.
ScottishPower said this was significantly ahead of expectations and comparable to or better than most UK fossil fuel generation.
Keith Anderson, the company’s chief corporate officer, said: “Offshore wind is now coming into its own ,with the power produced from the new windfarm at West of Duddon Sands ahead of expectations in the first quarter of this year.”
He added: “This shows the potential of offshore wind now that we are able to use larger turbines and better technology, which we will advance further with other new offshore projects.”
Mr Anderson highlighted the 714MW East Anglia One windfarm the company aims to have operational in 2019. ScottishPower’s
onshore windfarm fleet delivered 32.8 per cent of its theoretical maximum power.
Earnings from conventional power generation and sales of power to customers increased by six per cent annually, in sterling terms, to £173.5m from £163.5m.
The number of electricity customers fell to 3.3m in the first quarter, from 3.4m in the same period last year.
Gas customer numbers held steady at 2.2m. Demand for gas increased by 8.2 per cent annually owing to some cold weather.
Scottish Power’s networks business increased earnings by 23 per cent to €309.8m, from €252.5m.
Iberdrola said it is realising the benefits of a multi-billion pound upgrade programme in networks.
The group, which also has operations in the Americas, increased EBITDA by nine per cent in the first quarter to €2.14bn, against €1.96bn in the same period last year. It said growth reflected operational improvements in networks and renewables and a boost from the weakening of the euro.