Scottishpower Announces Record £2billion UK Investment In 2019
26th February 2019
** £2billion clean energy investment in UK in 2019 - record commitment in UK by ScottishPower
** ScottishPower announces plans for large-scale battery storage at UK windfarms
** New public electric vehicle charging business to start installations in 2019
Investment plan will support 300 new ScottishPower jobs in 2019
ScottishPower has announced it will spend up to £2billion in the UK in 2019, the company's biggest ever investment in the country in a single year. The announcement came as ScottishPower updated its investment plans following the sale of its thermal generation business and transition to 100% renewable energy in 2018.
ScottishPower CEO, Keith Anderson, said: "Our first investment plan since leaving coal and gas behind is a historic milestone for ScottishPower and is a vote of confidence in the UK's commitment to decarbonising the economy. In a time of uncertainty the UK needs to deliver its Industrial and Energy strategy and that's what we're providing with our biggest ever investment in a single year.
"Consumers want and need access to reliable, clean and affordable energy. 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.
"Now that we have sold our gas power stations our growth plans are about cleaner and smarter power that will help the UK to decarbonise faster and we have set out the part we will play in the transition to electrify the economy where it matters most now - in transport and in heating."
Between 2018-2022 ScottishPower will spend £6billion in the UK with 40% on new renewable energy generation, 42% on smarter enhanced networks and 15% on innovative services and products for customers.
ScottishPower will invest in smarter services for customers, including products to unlock the market for electric vehicle ownership.
As part of its strategy for growth ScottishPower announced plans for a new public electric charging service based within the company's Retail division. The new business will install fast chargers across the UK at strategic commercial locations from winter 2019.
The company also announced plans for a 50MW battery storage project at Whitelee the UK's largest onshore windfarm. The large-scale battery project will be the first of a series of storage schemes, mainly located at windfarms and at strategic points on the network. ScottishPower believes the combination of renewable energy and flexible storage are the most cost effective low carbon solution for consumers.
In renewables ScottishPower set out plans to develop a 1GW pipeline of onshore wind projects by 2025. 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.
Construction continues at pace for the East Anglia ONE offshore windfarm located 43km off the Suffolk coast. The £2.5billion project will see 102 Siemens Gamesa turbines deployed, each with a capacity of 7 megawatts; which could in total provide enough clean energy to power the equivalent of more than 630,000 homes annually. Over 50 percent of the project's total investment will be spent in the UK, ensuring the benefits of East Anglia ONE are felt across the country.
ScottishPower has also gained planning consent for East Anglia THREE windfarm for up to 1,200MW and planning consultations on the company’s next two large offshore windfarms in the East Anglia zone have begun. If consents are granted, it is anticipated that East Anglia TWO will commence construction in 2024 and East Anglia ONE North will commence construction in 2025.
SP Energy Networks will continue to deliver smart and efficient grids capable of supporting the UK’s future energy needs. In 2019 the networks business will focus investments on continuing the company’s leading role in connecting renewables in Scotland, Wales and England.
Investments will also target the digitalisation of the grid including ground-breaking artificial intelligence systems that will control and balance the network in areas with high penetration of low carbon technologies enabling the transition to widespread use of electric vehicles.
The proposed East Anglia TWO site is located in the southern North Sea approximately 31km from its nearest point onshore; the port of Lowestoft and 32km from Southwold. It would cover an area of 255km2 and up to 75 wind turbines would have an operational capacity of up to 900 megawatts which is enough to power approximately 742,413 UK households.
The proposed East Anglia ONE North site is located in the southern North Sea approximately 36km from its nearest point onshore; the port of Lowestoft and 42km from Southwold. It would cover an area of 208km2 and up to 67 wind turbines would have an operational capacity of up to 800 megawatts which is enough to power approximately 659,000 UK households.
In October 2018 Scottish Power announced it will become the first major UK energy company to generate all its electricity from wind power instead of coal and gas, after selling its final gas and hydro stations to Drax.
Power company Drax has paid £702m for the rest of Scottish Power's conventional generation business.
Scottish Power plans to invest £5.2bn over four years to more than double its renewables capacity.
Chief executive Keith Anderson said it was a "pivotal shift" for the firm.
"We are leaving carbon generation behind for a renewable future powered by cheaper green energy. We have closed coal, sold gas and built enough wind to power 1.2 million homes," he said.
However, the move does not mean Scottish Power customers will only be using electricity generated by wind turbines, as producers using other types of power generation all feed the UK grid.
Scottish Power is owned by Iberdrola, a Spanish company. The company is one of the largest suppliers of gas and electricity to homes in the UK.
Previously the company had 5.2 million customers. However Scottish Power has reported losing about 100,000 residential customers in the second quarter of 2018. The energy firm said customer numbers fell from five million in the previous quarter, to 4.9 million. In April 2018, Scottish Power announced a 5.5% rise in gas and electricity prices for nearly one million of its customers, effective from 1 June 2018.
In 1995 Scottish Power bought MANWEB (Merseyside And North Wales Electricity Board) and merged it into the company.