SSE has announced a refresh of its four core business goals for 2030, aligned to the UN's Sustainable Development Goals and linked to executive remuneration.
The four goals increase SSE's climate ambition in line with its Net Zero Acceleration Programme (NZAP) and reflect the extent to which SSE has already delivered against its previous goals established in 2019.
The refreshed goals are to reduce Scope 1 carbon intensity by 80%; build a renewable energy portfolio to generate at least 50TWh; enable 20TWh of renewable generation, two million electric vehicles and one million heat pumps on its transmission and distribution networks.
The trading update also announced that the Perth-headquartered energy group is upgrading expectations for full-year 2021/22 adjusted earnings per share to at least 90 pence - from at least 83 pence.
This reflects the "strength and stability provided by SSE's balanced mix of regulated and market facing businesses", including good financial performance from flexible thermal and hydro plant, which is more than offsetting lower than planned renewables output.
SSE intends to recommend a full-year dividend of 81p per share plus RPI for 2021/22 and continues to target an RPI linked dividend in 2022/23, followed by a rebase to 60p in 2023/24 and at least 5% increases in 2024/25 and 2025/26.
SSE remains on track to report full year capital expenditure in excess of £2bn.
Net debt is expected to be around £9bn at 31 March 2022, assuming the proceeds from the disposal of SSE's 33.3% stake in SGN are received prior to the year-end.
Following its success in the ScotWind seabed leasing auction last month, SSE Renewables is set to take part in the New York Bight seabed auction on 23 February, where six leases are available.
SSE also recently announced plans to enter bids into the upcoming tenders for the 1.4GW Hollandse Kust (west) Wind Farm Zone in the Netherlands, taking place in the first half of 2022.
The group reported progress on its £12.5bn investment and capital expenditure plan. In November, financial close was reached on Dogger Bank C, while construction continues at Dogger Bank A&B offshore wind farms, as well as Viking onshore wind farm.
First power on Seagreen offshore wind farm is targeted for sometime during the second quarter this year, and is expected to commence full commercial operation in January 2023.
Elsewhere, commissioning is currently under way at SSE Thermal's 893MW Combined Cycle Gas Turbine plant at Keadby 2 and this will be followed by a performance validation period before handover in the fourth quarter.
SSE has also partnered with Equinor on two new carbon capture projects - Keadby 3 and Peterhead - which have been formally submitted to the UK Government's Cluster Sequencing Process.
Finance director Gregor Alexander said: "SSE's performance in the year so far gives us renewed confidence about delivery of good financial results for the full year.
"When coupled with the progress made on our capex plans in recent months, it also highlights the value we are creating for all stakeholders from continued execution of our net zero-aligned strategy.
"The significant bolstering of SSE Renewables' pipeline, the increased visibility we have over opportunities for greater growth in SSEN Transmission and the balance provided by SSE Thermal through a turbulent trading period have demonstrated yet again the value of SSE's integrated business mix and its capacity for delivering sustainable shareholder returns over the long term."
Electricity output from renewable sources in which SSE has an ownership interest across the UK and Ireland (excluding pumped storage) was 1.4TWh at the end of last year, or 19% below plan in the nine months to 31 December, largely due to the summer months being exceptionally still and dry across the UK and Ireland.
This shortfall represents 13% of the annual forecast total output.
In late November, 135,000 homes in SSEN's licence area in the North of Scotland were impacted by Storm Arwen.
In response to this once-in-a-generation weather event, SSEN mobilised more than 1,000 employees who worked through extreme conditions to restore supply to customers.
Electricity output from SSE's gas-fired generation plant for the nine months to 31 December 2021 was around 14% lower than in the same period in 2020, reflecting plant availability and market conditions.
Flexible thermal generation continues to play a key part in the UK energy markets as the nation transitions to net zero, with its role now focused on creating value by providing vital balancing services to enable a renewables-led system.
"Its profitability is therefore less dependent on the volume of its output and financial performance for the year is expected to be ahead of plan," the financial statement noted.
Stephen Wheeler took up his post as managing director of SSE Renewables on 1 January.
He was part of the successful management team that grew the Airtricity renewable energy platform before SSE acquired it in 2008. He previously spent over 10 years working with ABB and Siemens internationally.
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