SSEN to revamp network operations with £4bn plan

Scottish and Southern Electricity Networks (SSEN) has submitted its final RIIO-ED2 2023-2028 business strategy, which includes a proposal to invest £4 billion ($5.2 billion) to accelerate the decarbonisation and digitalisation of the grid network.

SSEN says the plan will enable the utility to contribute more towards the accelerated 2035 decarbonisation of the UK’s network.

The investment will allow SSEN to develop and leverage a smart and flexible grid network that will enable the achievement of net-zero.

The six goals laid out in the plan include:

• Create a foundation for net zero by investing £1bn in strategic resilience across its networks
• Reduce the frequency and duration of power interruptions by 20%
• Achieve a customer satisfaction score of at least 92% in every contact area
• Support 200,000 customers in fuel poverty with targeted support and energy efficiency measures
• Facilitate the connection of 1.3m electric vehicles and 800,000 heat pumps on its network
• Cut its business carbon footprint by 35% aligned to a 1.5°C science-based target, accredited by the Science Based Targets initiative.

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The investment will create 850 jobs and help the utility to meet energy demand which is expected to double by 2028 owing to the increased use of electric vehicles, heating systems and industrial processes.

The capital will target the integration of EVs, decarbonisation of heat pumps and the installation of smart grid and intelligent devices and technologies on the network.

Chris Burchell, Managing Director of SSEN Distribution, said: “Networks will unlock the electrification of the economy with billions of pounds in investment to create modernised local electricity grids fit for a net-zero future. Our RIIO-ED2 business plan represents an important and critical step in this journey.

“As energy policy and targets accelerate at pace, it’s critical we invest at the right level now to meet this ambition and avoid a higher cost future. We now need Ofgem to support this aim by providing an agile price control framework which gives the certainty and flexibility required to meet evolving policy and customer needs.”

Burchell said the strategy will help empower communities and enable them to play a key role in the energy transition whilst combating energy poverty.

Burchell added that the investments will be made “with no planned increase to network charges on customer bills, something we recognise is important in the wider context of overall energy costs.”

SSEN will direct £360 million ($476.4 million) towards grid digitalisation and customer services, £2.2 billion ($2.9 billion) towards grid resilience and over £1 billion ($1.3 billion) to accelerate net zero for communities by deploying measures such as the addition of 3.7GW of new capacity by 2028.

Additional measures such as using subsea cables to support broadband rollout to remote islands and providing communities with net-zero energy services and energy efficiency will deliver over £50 million of net consumer benefit, according to SSEN.

The plan is expected to be approved by regulator Ofgem in 2022.