Airtricity-owner SSE sells stake in power network for €1.7bn       

Power company sells 25% stake in its power transmission network business to Canadian teachers' pension fund

The stake sale of SSEN Transmission is part of a plan SSE outlined last November when it pledged to invest £12.5bn in renewables.

British power generator and network operator SSE, which owns Airtricity across Ireland, said it would sell a 25% stake in its power transmission network business to Canada's Ontario Teachers' Pension Plan Board for £1.47bn (€1.7bn). 

The stake sale of SSEN Transmission is part of a plan SSE outlined last November when it pledged to invest £12.5bn in renewables. So far, SSE has sold a 33.3% stake in gas distribution operator Scotia Gas Networks for nearly £1.29bn. 

"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," SSEN Transmission managing director Rob McDonald said.

The investment plan announced last year represents £1bn of additional capital expenditure per year over its previous spending programme and SSE has said it will expand its renewable power capacity five fold by 2031.

SSEN Transmission operates under its licensed entity, Scottish Hydro Electric Transmission. SSE also has a £750m revolving credit facility to help SSEN Transmission with capital requirements, the company said.

Power companies in Britain have been hit by the British government's plans to increase a windfall tax to 35% and to extend it to power generation firms to help plug a major hole in public finances. 

• Reuters