Perth-based energy giant SSE has sold a 25 per cent stake in its Scottish electricity transmission network to a Canadian pension fund in a deal worth nearly £1.5 billion.
The sale to Ontario Teachers' Pension Plan Board will raise cash for further investment in renewable energy following SSE's pledge last year to pump £12.5bn into clean energy projects. Along with its electricity transmission network division, London-listed SSE operates gas-fired and hydroelectric power plants, plus on-shore and off-shore wind farms.
SSEN Transmission – which operates as Scottish Hydro Electric Transmission – is responsible for the pylons and cables that carry electricity from power generators such as wind farms to local distribution networks. Such transmission systems are regional monopolies, with revenues set by the regulator Ofgem and funded by levies on consumer energy bills.
"With the north of Scotland home to the UK's greatest resources of renewable electricity we have a critical role to play in helping deliver the UK and Scottish governments' net zero commitments," SSEN managing director Rob McDonald said.
READ MORE: Perth-based energy giant in £1.2bn deal with Canadian investors
"Our investments will also be key to securing the UK's future energy independence through enabling the deployment of homegrown, affordable, low-carbon power."
Ontario Teachers will pay £1.47bn for the minority stake. SSE said its has also set up a £750 million revolving credit facility to help SSEN Transmission with its capital requirements.
Ontario Teachers was part of a consortium that last year purchased from SSE its remaining 33.3% stake in distributor Scotia Gas Networks, which trades as Scotland Gas Networks and Southern Gas Networks.
Charles Thomazi of Ontario Teachers added: "We're delighted to partner again with SSE and are committed to supporting the growth of its network and the vital role it plays in the UK's green energy revolution."
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