Doldrums: Weak winds hits SSE's power output in first half of year

UK renewables developer SSE has reported a 29% dip in output of electricity from renewable sources in the first half of 2023 due to “adverse” weather conditions, but the company forecast that the shortfall in planned output would narrow to 5% for the whole year.

In its trading update for the first half of 2023, SSE said output of electricity from renewable sources in which the company has an ownership interest was 29% behind plan by 30 June, due mainly to those dry and still weather patterns in the first quarter.

SSE's overall renewables output was 1.552GW in the first quarter, falling well short of the expected 2.176GW.

Wind conditions were described as “well below the long-term average and, equating to a 5% shortfall on planned renewables output for the year.”

The company stressed that what it called the “key moments” in its financial year were still to come and added that the first few weeks of the second quarter brought a return to more normal weather.

In its trading statement, SSE reaffirmed its previous full year adjusted earnings guidance of more than £1.50 ($1.91) per share. This was on the basis of “a return to more normalised weather, and plant performance and market conditions continuing in line with expectations.”

Operational highlights

Operational highlights included installation of the114th and final Vestas turbine at the UK’s Seagreen offshore wind farm in June, with around 90 of the turbines are now commissioned.

First power from the Dogger Bank A wind farm is expected in the coming weeks following connection of the first GE Renewables Haliade-X turbines.

The company also noted that around half of the Vestas turbines ordered for the Viking onshore wind farm have been installed in the Shetland Islands.

A joint venture was also signed with the UK’s National Grid to deliver Eastern Green Link 2, a 2GW HVDC subsea Scotland to England transmission cable.

Gregor Alexander, SSE finance director, described SSE as a “long-term business with a clear strategy”.

He stated: "We are making good progress on the critical national infrastructure projects that underpin our growth plans out to 2027, and we continue to develop options that could see us invest up to £40bn over the next decade.

"We are seizing the long-term opportunities presented by net zero while in the near term, subject to normal weather and plant availability, our outlook for the full-year remains unchanged."