SSE plc LON:SSE has announced a £33bn five-year investment plan that it says will transform its business into one of the world’s fastest-growing electricity network operators, sharply increasing its exposure to regulated UK assets and promising robust long-term returns.
The fully-funded programme, running to 2029-30, represents a tripling of investment compared with the previous five-year period. Around £27bn, or 80% of the total, will be channelled into regulated UK electricity networks, with the remaining £6bn deployed selectively across renewables and system flexibility.
The company expects the surge in investment to drive a roughly 25% compound annual growth rate in its regulated asset value (RAV), more than tripling the size of its regulated base by the end of the decade.
SSE reaffirms dividends policy
SSE forecasts adjusted earnings per share to rise at a 7–9% CAGR, reaching between 225p and 250p by 2029/30, underpinned by strong regulatory returns. Around 80% of group EBITDA is expected to be index-linked by that point, reflecting the increasing weight of its networks portfolio. The company reaffirmed its “sustainable and progressive” dividend policy, targeting annual growth of 5–10% from a 2024-25 baseline of 64.2p per share.
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Chief executive Martin Pibworth described the plan as a “once-in-a-generation opportunity” to upgrade the UK’s electricity infrastructure, accelerate the transition to cleaner energy, and stimulate wider economic growth. “Our world is rapidly electrifying,” he said. “SSE’s long track record in delivering major assets positions us strongly to meet the UK’s critical infrastructure investment needs and create sustainable value for shareholders and society alike.”
How will SSE’s plans be funded?
The plan will be funded through a combination of operational cash flow (55%, or about £21bn), an increase in adjusted net debt and hybrid capital (35%, or about £14bn), and roughly £2bn each from an equity placing and targeted asset rotations. Net debt to EBITDA will remain below 4.5x, within the thresholds needed to preserve SSE’s investment-grade credit rating.
More than two-thirds of the planned capital expenditure will flow into SSEN Transmission, which will invest around £22bn in the RIIO-T3 programme to strengthen the UK’s high-voltage grid and connect new renewable capacity. That investment is expected to lift transmission RAV to about £30bn by 2029-30, a 30% annual growth rate. A further £5bn will go to SSEN Distribution, boosting its RAV to between £9bn and £10bn.
SSE Renewables will receive around £4bn to complete its current construction pipeline and pursue disciplined growth opportunities, targeting an installed capacity of roughly 9GW by the end of the plan. About £2bn will be directed towards SSE Thermal and flexibility projects. Another £3bn of investment remains uncommitted, subject to strict capital return criteria.
The investment programme is designed to deliver a 50% uplift in earnings, while building one of Europe’s largest and most strategically significant electricity infrastructure portfolios. The company expects to maintain strong balance sheet metrics, distributing roughly £6bn in dividends, taxes and other cash obligations over the period.
Alongside the announcement, SSE confirmed interim results for the six months to 30 September 2025, reporting adjusted EPS of 36.1p and £1.6bn of capital investment, 70% of which was in regulated networks. It reiterated earnings guidance of 175–200p for 2026-27, excluding the effect of the new equity placing.
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