Finance
British utility SSE seeks to raise $2.7 billion for grid investments, shares soar
Published by Global Banking & Finance Review®
Posted on November 12, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 12, 2025
2 min readLast updated: January 21, 2026
SSE announces a £33 billion investment plan to upgrade UK electricity networks, including a £2 billion equity raise. Shares soar over 11%.
By Ankita Bora and Yadarisa Shabong
(Reuters) -British utility SSE unveiled a 33 billion pound five-year investment plan on Wednesday, including a 2 billion pound ($2.68 billion) equity fundraising, as it seeks to upgrade the UK's regulated electricity networks and bolster its renewables business.
SSE's shares rose more than 11% to a record high. Analysts were positive about the plan which provided clarity on the company's growth outlook.
The company's investment plan highlights Britain's need to overhaul its aging power grid to meet rising electricity demand from electric vehicles and artificial intelligence.
SSE CEO Martin Pibworth said it was a once-in-a-generation opportunity to upgrade critical infrastructure.
"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," Pibworth said.
NEW PLAN BRINGS CLARITY
About 80% of the planned spending, or 27 billion pounds, will go towards upgrading the regulated electricity networks, with the remainder invested selectively in renewables and flexible generation assets, SSE, one of the largest generators of renewable and flexible energy in the UK and Ireland, said.
"The new plan brings clarity on the balance sheet and the company's growth outlook," Jefferies analyst Ahmed Farman said in a note. "The equity raise shouldn't surprise, and the 2 billion pounds equity is towards the lower-end of the scenarios we have discussed previously."
Other European utilities are also looking to increase investment and have tapped shareholders for cash.
Last month, Ørsted announced plans to raise 59.56 billion Danish crowns, while last year Britain's National Grid tapped shareholders for 7 billion pounds to fund its investment programme.
SSE's plan will be funded primarily through cash flow generation and increased borrowing, alongside equity placing and plans to sell about 2 billion pounds worth of assets.
The power generator and network operator posted a 28% year-on-year drop in first-half adjusted pretax profit to 521.5 million pounds for the six months ended September 30, hurt by lower output and unfavorable weather conditions.
It maintained its full-year outlook.
($1 = 0.7451 pounds)
(Reporting by Yamini Kalia, Ankita Bora and Yadarisa Shabong in Bengaluru; Editing by Sumana Nandy, Subhranshu Sahu, Rashmi Aich and Jane Merriman)
Equity fundraising is the process of raising capital by selling shares of a company to investors. This method allows companies to gain funds for expansion or operational needs without incurring debt.
Renewable energy is energy derived from natural sources that are replenished at a faster rate than they are consumed. Examples include solar, wind, and hydropower.
Utility investment refers to the allocation of capital into companies that provide essential services such as electricity, water, and natural gas. These investments are often considered stable and reliable.
A power grid is a network of transmission lines, substations, transformers, and more that deliver electricity from power plants to homes and businesses.
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