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Scottish Power to only generate wind powered electricity

Interesting development in the electricity generation markets today with news that Scottish Power (owned by the Spanish utility Iberdrola) is to sell all of its gas and hydro-electric generating assets to Drax in a deal worth £700m.

Scottish Power to only generate wind powered electricityOnce concluded, this deal means that all Scottish Power’s electricity will be generated by on shore and off shore wind. The company plans to invest the proceeds in more wind and, increasingly, solar assets.

Scottish Power will be the first major UK generator to produce electricity solely from renewable means. It’s interesting that the official line from Scottish Power talks about the reduction in carbon emissions but doesn’t mention that its increasingly hard to make any money from gas turbines when wind and particularly solar, are generating much cheaper electricity.

This will prove a canny move by Scottish Power, expect others to follow.

The FT reports the story here.

Your business may also benefit from the cheaper electricity generated by solar. You can discuss this with us here


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