Scottish & Southern placing set to raise 470 million pounds
SSE shares, up a fifth in value over the past four weeks, fell 8.2 percent to 1,159 pence by 10:30 a.m. British time on the news SSE will place up to 5 percent of its issued ordinary share capital, which totalled 876 million shares on December 31.
"The successful placing of shares will reinforce our balance sheet strength and enhance the range of options open to us," chief executive Ian Marchant said in a statement.
The company said in a statement that it expected the proceeds of the placing to provide an extra source of funding to help it to take advantage of investment opportunities of up to 6.7 billion pounds over five years.
It said it would assist it in buying small and medium-sized assets "which may become available from time to time."
The group said that in line with that strategy, it was finalising a couple of deals to acquire stakes in wind farm projects in Scotland and the Republic of Ireland.
SSE confirmed it was trading in line with management expectations and it was on track for a modest rise in adjusted pretax profit for 2008/09.
It also said it was on course to deliver a full-year dividend of at least 66 pence per share for the year to March 31, 2009, up 9.1 percent against a year earlier.
Charles Stanley analyst Tina Cook said the performance update was positive, but said the share price fall might reflect market uncertainty about the detail of the share placing.
"There may also be some question about whether they are having difficulties raising debt," she said.
Angelos Anastasiou at Pali International said SSE had not had problems accessing the debt markets, although he said the company had aggressive capital spending growth plans and the placing should underpin its position.
"While there will be a big step up in capex over the next few years, SSE's record is very strong, and the returns should rapidly accumulate as the various projects are completed," Anastasiou said.
"We also believe SSE remains very attractive to the Euro-consolidators. Overall, we still see SSE as a very good growth story, and we would look to participate in the placing."
(Reporting by Ben Deighton and Philip Waller; Editing by Matt Scuffham, Dan Lalor and Mike Nesbit)
Sungrow links Europe's largest energy storage plant to grid
Europe's largest energy storage project, the 100MW/100MWh Minety plant featuring Sungrow's 1500V energy storage system solutions, has been successfully connected to the UK grid.
The UK experienced the most debilitating blackout in nearly a decade in August 2019. The incident exposed the serious lack of frequency regulation of the national grid and demonstrated that the construction of energy storage projects that can regulate the frequency of the grid in a timely fashion should be prioritised. The Minety project, which began at the end of 2019, considerably mitigates the problem and is designed for facilitating grid stability and maximising renewable energy utilisation.
Sungrow supplied both NCM and LFP battery energy storage system solutions featuring high integration, which minimise the footprint, slash the commissioning duration and significantly reduce the system cost by 5%. The solution well meets the latest UK frequency regulation requirement called dynamic containment - requesting the plant to respond to the power instruction of the grid within 1 second, making the project one of the rare 30% of the UK's storage plants equipped with this function.
"We are proud of being part of this landmark project, offering solutions with extreme efficiency and safety while in compliance with the stringent UK grid codes," said James Wu, Vice President of Sungrow, which shipped more than 800MWh of energy storage systems in 2020.
Battery storage capacity in the UK is likely to heavily increase as move towards operating a zero-carbon energy system. At the end of 2019 the GB battery storage capacity was 0.88GWh. National Grid forecasts it could be as high as 2.30GWh in 2025.
Global energy storage updates
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Enlight Renewable Energy has completed the acquisition of 90.1% of the holdings in Clēnera LLC, a leading and seasoned company in the field of initiation, development, construction and operation of solar energy and energy storage projects in the United States.
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