Scottishpower plans to invest £2 billion in clean energy
SCOTTISHPOWER has said it will invest a record £2 billion in clean energy in the UK this year as it plans to build more wind farms and to install electric vehicle charging points across Scotland.
The Glasgow-based energy giant said it wants to play a key role in the push to cut carbon emissions by helping electrify the economy where it matters most: in transport and heating.
The programme will involve Spanish-owned Scottishpower investing in generating more renewable energy and in the facilities required to help ensure consumers make the most of its potential.
The company said it will start installing fast chargers across the UK at strategic commercial locations from winter 2019 in a move it reckons will unlock the market for electric vehicle ownership.
It is understood this will involve installing kit in places that would allow drivers to make charging their cars part of their routine, such as out of town shopping centres.
“Onshore wind remains the lowest cost technology for new electricity generation in the UK and Scottishpower sees substantial opportunities for the continued development of onshore wind projects across Scotland and other areas of the UK,” said the company.
Scottishpower also announced plans to develop a pioneering battery storage project at the giant Whitelee onshore wind farm on Eaglesham Moor south of Glasgow, which is the biggest in the UK. This could be used to ensure power is available to meet variations in demand.
The company said the largescale battery project will be the first of a series of storage schemes in the UK, which will be mainly located at wind farms and at strategic points on the network.
It reckons the combination of renewable energy and flexible storage provides the most costeffective low carbon solution.
Scottishpower’s offshore wind development effort is focused on the waters off eastern England.
The 2019 investment plan is expected to result in the company creating around 300 jobs, a significant number of which will be in Scotland.
Chief executive Keith Anderson said the plan was a historic milestone for Scottishpower and provided a vote of confidence in the UK’S commitment to decarbonising the economy. Scottishpower invested £1.6bn in clean energy in 2018.
“Consumers want and need access to reliable, clean and affordable energy,” he said. “That is what Scottishpower is focused on delivering and as long as Government climate change commitments stay firm, with sensible policies to support them, this investment will continue.”
The company expects to spend £6bn in the UK between 2018 and 2022.
Last week it posted a 27 per cent increase in profits, to £1.54bn, for 2018. Mr Anderson said the year had been pivotal. The firm completed the “landmark” journey from coal and gas to 100% green power by selling its conventional generation business to Drax for £702m in October.
The unit includes a giant reservoir-based power generator in Argyll, the Lanark and Galloway hydro-electric facilities on rivers in south-west Scotland and a biomass fuel plant near Glasgow, along with four gas-fired power stations in England. Drax said yesterday the assets were highly complementary to its strategy and would form a very important part of its portfolio.
It aims to support the move to renewables by investing in generating and storage facilities that will complement wind and solar output. The company has adapted the giant coal-fired power station in Yorkshire from which it takes its name to run partially on wood pellets.
The head of Drax’s power generation business, Andy Koss, said it could invest significant amounts developing the assets acquired from Scottishpower, with appropriate official support.
Drax grew underlying profits by 9% to £250m last year.