British power generator and grid operator SSE said on Friday it would sell a 25 percent stake in its power transmission network business to Canada’s Ontario Teachers’ Pension Plan Board for 1.47 billion pounds ($1.78 billion), as part of efforts to reduce greenhouse gas emissions. emission.
The SSEN Transmission stake sale is part of SSE’s plans outlined last November when it pledged to invest 12.5 billion pounds in clean energy projects.
So far, SSE has sold a 33.3 percent stake in gas distribution operator Scotia Gas Network for almost 1.29 billion pounds as part of a bid focused on renewable energy and the network.
“With significant growth forecast in transmission, bringing Ontario Teachers on board as a minority stake partner will help fund our ambitious investment plans as we continue to deliver a net zero emissions network in northern Scotland,” said SSEN Transmission Managing Director Rob McDonald. .
The investment plan announced last year represents 1 billion pounds of additional capital expenditure per year from previous spending programs and SSE has said it will expand its renewable power capacity fivefold to 50 terawatt hours a year by 2031.
SSEN Transmission – which operates under the licensee – Scottish Hydro Electric Transmission plc, will be led by SSE’s financial director, Gregor Alexander, and Ontario Teachers’ will receive proportional representation on the board, SSE said on Friday.
SSE also has a 750 million pound revolving credit facility to assist SSEN Transmission with capital requirements, the company said.
Electricity companies in Britain have been hit by the government’s plan to increase the windfall tax to 35 percent and extend it to power generation firms to help plug a major hole in public finances.