SSE aims to raise £2 billion to support its investment initiative.

SSE Plc plans to raise approximately £2 billion ($2.6 billion) through new shares to support a £33 billion initiative aimed at upgrading its grids and enhancing renewable energy.

Around 80% of this investment will focus on improving and expanding power grids in the UK, which need to adapt to the rapid growth in renewable energy, the transition to electrify industries, and the expansion of artificial intelligence.

This equity raise indicates that major European utilities are seeking investor funding for large-scale grid and renewable projects. Recently, Denmark’s Orsted A/S secured 60 billion Danish kroner through a rights offering, marking the largest by a European energy company in over ten years.

“Our world is rapidly electrifying, and we need to build, connect and transport ever greater volumes of homegrown power to homes and businesses to power the digital age,” stated Martin Pibworth, SSE’s CEO.

Of the total plan, about £27 billion will be allocated to electricity networks, while the remaining £6 billion will focus on developing renewable assets, including wind farms and flexible resources like batteries and gas plants.

The company confirmed its financial guidance, stating it remains on target to achieve adjusted earnings per share of 175 to 200 pence in 2026/27 based on current share calculations. However, the issuance of new shares may dilute earnings per share due to the increased share count.

SSE’s capital investment during the six months ending September 30 increased by 22% to £1.6 billion, primarily covering grid expenditures.