SSE has agreed the sale of a 25% stake in their SSEN Transmission business to Ontario Teachers’ Pension Plan Board in a £1,465m deal.
SSE says the sale will help boost the growth of the network and provide an opportunity to invest in SSE’s other core businesses.
Investment in electricity transmission is key to achieving net zero targets. As an integral element of the energy supply chain, transmission infrastructure facilitates the distribution of renewable energy generation. If transmission capabilities are not improved in the UK, additional renewable power will struggle to reach people’s homes.
“We are delighted to agree a transaction that will help unlock the full potential of our growing electricity transmission business, which remains core to our strategic direction as a clean energy champion specialising in electricity infrastructure,” said Gregor Alexander, Finance Director of SSE.
“As we set out in our Net Zero Acceleration Programme last year, due to the scale of potential growth and the associated investment required across SSE’s businesses, including in electricity networks, bringing in minority partners will balance capital allocation and support further growth, creating greater long-term value for all our stakeholders.
“In Ontario Teachers’ we have a strong long-term partner who we have worked with successfully over the past 18 years and, whilst we will retain operational control, they will be critical to SSEN Transmission’s ongoing future success.”