The investment targets to enable connection to 1.3 million electric vehicles and 800,000 heat pumps

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SSEN unveils £4.1bn business plan. (Credit: Pexels from Pixabay.)

Scottish and Southern Electricity Networks (SSEN) Distribution, a subsidiary of UK-based energy company SSE, has unveiled plans to invest £4.1bn ($5.7bn) in its networks and services.

SSEN Distribution’s draft plan for 2023-2028 aims to reduce the frequency and duration unplanned power cuts by 20%.

The plan also targets to enable connection to 1.3 million electric vehicles and 800,000 heat pumps.

Electric vehicle ownership is estimated to increase from current 30,000 to 5 million by 2050 in SSEN’s distribution network areas. During the same period, 2.5 million heat pumps are forecast to be installed in the areas.

SSEN distribution managing director Chris Burchell said: “The need to transform our energy system to address the climate emergency has never been clearer and it is critical that local electricity networks are an enabler rather than a constraint as we work toward a shared net zero future.

“Co-created with our stakeholders, we have developed an ambitious and balanced business plan, which provides more, efficient investment today to meet the net zero challenge, while also keeping bills down for current bill payers and supporting those most vulnerable with the challenges of here and now.

SSEN’s £4.1bn investment in its networks and services over the five-year RIIO-ED2 represents about 35% increase compared to RIIO-ED1.

The firm has allocated nearly £400m from the total investment to improve service for customers and digitalising systems.

It would invest round £2.2bn in asset reliability and resilience, allocating half of it to target network resilience, creating a base for the net zero demands.

Also, more than £1bn will be used to advance net zero for communities, including investment in network and flexible solutions to deliver an additional 2GW of new network capacity.

Furthermore, the company is expected to incur £500m in general running costs.

Operating as Scottish Hydro Electric Power Distribution (SHEPD) and Southern Electric Power Distribution (SEPD), SSEN powers 3.8 million homes and businesses in communities across the north of Scotland and central southern England.

Burchell added: “There will inevitably be a degree of uncertainty in the years ahead as energy policy and targets continue to accelerate, therefore it is essential that Ofgem supports us by providing an agile regulatory framework that helps deliver a network where customers can switch to EVs and other net zero technologies with ease at a time they choose.

“We will continue working with our customers and stakeholders over the coming months to further refine our proposals and help strengthen our plan to power communities to net zero.”