UK energy firm SSE has announced a $2 billion (£1.5 billion) cut to its renewable energy investment through 2027, citing a difficult economic climate. The move deals another setback to Britain’s clean energy goals.
The company revealed on Wednesday that it is lowering its total five-year investment plan by $4 billion (£3 billion) to about $23.4 billion (£17.5 billion). Half of that reduction comes from renewables, while the other half affects spending on power transmission and thermal energy.
SSE said the cuts reflect the need for “financial discipline in a changing macro environment” and delays in obtaining project approvals.
About 90% of the revised investment plan is already committed. However, the remaining funds may be postponed or canceled unless better investment conditions appear, the company warned.
Although SSE Renewables has expanded its capacity and output in recent years, the company now expects slower progress. It acknowledged that it is unlikely to reach its previous target of generating 50 terawatt-hours of renewable energy annually by 2030.
SSE’s announcement comes shortly after Danish energy giant Ørsted pulled back from developing the Hornsea 4 offshore wind project in the UK.
Ørsted CEO Rasmus Errboe said rising supply chain costs, higher interest rates, and greater execution risks had weakened the project’s value. He added that wider economic and regulatory challenges have made near-term prospects more difficult for the offshore wind sector, even as long-term confidence remains.
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