UK utility SSE will bring its renewable energy assets under the umbrella of a new business unit – SSE Renewables – as a prelude to moving into new markets beyond Great Britain and Ireland.

Scotland-based SSE will bring all its operating and in-development renewables into the new entity – covering onshore and offshore wind, and hydro – which will be led by current managing director of generation Jim Smith.

SSE Renewables expects operating assets to total 4GW by the end of March 2019, subject to the sale of half-shares in two onshore wind farms.

The London-listed utility signalled earlier this year that it saw a wider, renewables-focused remit for its generation activities. Its retail power operation is currently engaged in a lengthy, complex merger process with the UK arm of Germany’s Innogy.

Announcing the creation of SSE Renewables, the group said the new unit’s priorities include “fulfilling the potential of offshore wind and delivering renewed impetus in onshore wind”.

It will pursue “future growth opportunities by extending its core competencies in renewable energy to other technologies and geographies, where the right risk/reward balance can be achieved”.

That is likely to include the formation of partnerships with other players in the low-carbon sector, it said.

SSE’s immediate offshore wind ambitions are focused on the 588MW Beatrice, where it holds 40% and work is underway to bring it into service later this year.

Its 50/50 partnership at the up-to 3.6GW Dogger Bank, and fully-owned 1.05GW Seagreen offshore projects are both being progressed with a view to potential participation in the UK’s next CfD auction, due in Spring 2019.

Its 520MW Arklow Bank project in Ireland is subject to offshore wind being granted support there.

SSE CEO Alistair Phillips-Davies said: “The creation of SSE Renewables is the latest step in our strategic goal to give greater focus to renewable energy, give investors greater visibility of assets and earnings in the future and give each of the businesses in SSE the best platform for success.

“SSE has a unique portfolio of renewable energy assets and a valuable pipeline of future opportunities. The creation of SSE Renewables will build on SSE’s established skills in asset management and large capital project development and put the business in a strong position to evolve and succeed in a rapidly-changing electricity sector.”

Announcement of the creation of SSE Renewables came as SSE announced a 41% fall in adjusted pre-tax profits.

Fellow UK ‘big-six’ utility, Iberdrola-owned ScottishPower, recently signalled a switch of its own generation fleet to 100%-wind-power.

Transition

SSE Renewables formed as utility looks to clean-power future