SSE Airtricity posts €6.66m operating profit as parent company opts for further investment 

In a trading update, SSE said it upgraded its capital investment expectations by around 14% to support its Net Zero Acceleration Programme targets over the next five years

The company is the largest renewable energy provider in Ireland, with almost 700MW of installed onshore wind capacity reflecting enough energy to power almost half a million homes annually.

SSE Airtricity posted an operating profit of £5.8m (€6.66m) in the first half of its 2023 financial year, up marginally from £5.6m (€6.43m) in the previous six months.

However, in annual terms, profits remain significantly down, falling from £14.9m (€17.1m) in September last year following strong performances in its thermal power plants and a surge in energy prices.

In its latest trading update published on Wednesday, SSE’s Irish arm, SSE Airtricity posted €1.02bn in revenue, up annually from €855m, with the supplier’s customer base rising marginally in the year by 10,000 to 740,000.

The company is the largest renewable energy provider in Ireland, with almost 700MW of installed onshore wind capacity reflecting enough energy to power almost half a million homes annually.

In its latest half-year report, SSE highlighted its success in the Irish Government’s third Renewable Electricity Support Scheme (RESS) process in which it secured a contract for the 101MW Yellow River onshore wind farm in Offaly, delivering £47.3m (€54.3m) in capital expenditure for the project which is expected to be commissioned in early 2025.

In addition, SSE’s renewable division has said it will further expand diversity in its portfolio, securing a 1.2GW pipeline of near-term solar and battery projects across the UK and Ireland.

The company’s Irish arm also reiterated its commitment to Arklow Bank Wind Park 2, despite being unsuccessful in the first Offshore Renewable Energy Support Scheme (ORESS) auction in May this year but will proceed to submit a planning application in early 2024 to an Bord Pleanála.

Speaking in its latest trading update, SSE said it had upgraded its capital investment expectations by around 14% to £20.5bn (€23.5bn) to support its Net Zero Acceleration Programme targets for the five years until 2026/27.

Up from an initial outlook of £18bn, SSE has reacted to calls from both the UK and Ireland to further produce renewable power, with chief executive, Alistair Philips-Davies noting the “broad political consensus behind the need to build the electricity infrastructure required for net zero.” 

“We have increased confidence in our earnings forecasts not only for this year, but out to 2026/27.” 

The company reported adjusted earnings per share of 37 pence for the six months ending on the 30th of September, above its prior forecast of at least 30 pence apiece. The energy supplier also reaffirmed its fiscal year 2024 adjusted profit expectations of more than 150 pence per share.

Latest figures also show SSE employed 2,430 people across its Irish division, contributing €53.8m in tax over the same period. SSE’s Irish arm contributed €429m to its parent company, compared to a UK contribution of £6bn (€6.89bn).