Ontario Teachers’ Pension Plan Board is acquiring a 25% stake in SSE’s electricity transmission network business in a £1.5bn (€1.7bn) deal.
SSEN Transmission is responsible for the electricity transmission network in the north of Scotland, investing in and maintaining the high-voltage electricity transmission network.
Charles Thomazi, senior MD and head of EMEA infrastructure and natural resources, from Ontario Teachers’ said: “SSEN Transmission is one of Europe’s fastest-growing transmission networks. Its network stretches across some of the most challenging terrain in Scotland – from the North Sea and across the Highlands – to deliver safe, reliable, renewable energy to demand centres across the UK.
“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.”
Energy firm SSE said the stake in SSEN Transmission to the Canadian investor will help unlock significant growth in both the transmission business and across the wider SSE group.
Last week, SSE’s announced its intention to extend the partnering approach that has been successful in SSE Renewables to its core electricity distribution and transmission network assets through the sale of minority stakes in both businesses as part of the firm’s fully funded net zero acceleration programme.
Gregor Alexander, finance director of SSE, said: “We are delighted to agree a transaction that will help unlock the full potential of our growing electricity transmission business, which remains core to our strategic direction as a clean energy champion specialising in electricity infrastructure.
“As we set out in our net zero acceleration Programme last year, due to the scale of potential growth and the associated investment required across SSE’s businesses, including in electricity networks, bringing in minority partners will balance capital allocation and support further growth, creating greater long-term value for all our stakeholders.”
Rob McDonald, managing director of SSEN Transmission, said: “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.
“Our investments will also be key to securing the UK’s future energy independence through enabling the deployment of homegrown, affordable, low carbon power.
“With significant growth forecast in transmission, bringing in Ontario Teachers’ as a minority stake partner will help fund our ambitious investment plans as we continue to deliver a network for net zero emissions across the north of Scotland.”
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