ScottishPower has become the first energy company in the UK to exit completely from coal and gas generation to wind power after selling its traditional generation assets, worth £702 million, to Drax
The energy giant will produce 100% of electricity from clean wind power and has announced a £5.2 billion four-year plan to invest into renewables and smart grids to make electricity cleaner and cheaper for the UK.
Keith Anderson, Chief Executive of ScottishPower, said:
“This is a pivotal shift for ScottishPower as we realise a long-term ambition. We are leaving carbon generation behind for a renewable future powered by cheaper green energy.
“We have closed coal, sold gas and built enough wind to power 1.2 million homes.
“Every working day we are investing over £4m to deliver cleaner, smarter power for customers. From today we can focus solely on making energy generation cheaper, cutting carbon quicker, building smart grids and connecting customers to renewable electric future for transportation and heating.”
Currently ScottishPower has 2,700 megawatts (MW) of wind power capacity operating or under construction in the UK, and a stockpile of future projects capable of generating more than 3,000 MW.
Through offshore wind, ScottishPower has a ppipeline of 2,900 MW in addition to the 714 MW under construction at East Anglia ONE and has ambitions to secure more development areas in the next round of offshore wind leases following proposals made by the Crown Estate and Crown Estate Scotland.
The sale of generation assets forms part of Iberdrola’s €3 billion global asset rotation plan, which was announced to the market in February 2018.
The rotation of assets is designed to complement growth plans, and to support the reduction of carbon.
Iberdrola has its sights firmly set on reducing emissions by 30% by 2020, 50% by 2030 and to be carbon neutral by 2050.
Ignacio Galán, Chairman and Chief Executive of Iberdrola, said:
“Energy companies must be part of the solution to climate change. Iberdrola is acting now to cut carbon emissions 30% by 2020 and be carbon neutral by 2050. The sale of these generation assets is consistent with our strategy.”