ScottishPower has become the first integrated energy company in the UK to shift completely from coal and gas generation to wind power, after completing the sale of its traditional generation business to Drax for GBP 702 million.
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.”
In the last decade, ScottishPower has closed all of its coal plants, and with the sale of the remaining gas and hydro stations, the company now generates 100% of its electricity from wind power.
In offshore wind alone in the UK, ScottishPower has a pipeline of 2,900MW beyond the 714MW under construction at East Anglia ONE. The company is said to be closely following the proposals by the Crown Estate and Crown Estate Scotland, with ambitions to secure additional development areas in the next round of offshore wind leases throughout the UK.
Overall, ScottishPower is investing GBP 5.2 billion to 2022, with a focus on renewable energy, enhanced grid networks, and smart technology for customers.
“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,” Keith Anderson, Chief Executive of ScottishPower, said.
“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.”
The sale forms part of Iberdrola’s EUR 3 billion global asset rotation plan, which was announced to the market in February 2018 as part of the company’s strategic outlook, setting out core business objectives to 2022. Globally, Iberdrola aims to reduce emissions by 30% by 2020, and 50% by 2030 compared to 2007, and be carbon neutral by 2050.