SSE’s renewable energy output during the spring and summer was almost a third lower than planned, as low winds and dry weather combined with high gas prices to push up energy prices.
The FTSE 100 energy provider said on Wednesday that its wind and hydro yields between April 1 and September 22 were 32 percent below its target equivalent to an 11 percent hit in its full-year production forecast.
The summer was “one of the the least wind in most of the UK and Ireland and one of the driest in SSE’s hydropower areas in the last 70 years, ”the company said in a statement.
SSE’s update is the latest sign of how unfavorable weather conditions are hitting the renewable energy sector.
It comes as a global guest shortage, an increase in demand for energy after restrictions on coronavirus closure and some of the worst wind conditions in the North Sea for more than two decades, British and continental European energy prices this month have to their highest levels ever.
SSE expects to report adjusted earnings per share in the range of 7.5p to 10p for the six months to 30 September. year.
He expects to recommend an annual dividend of 80p plus inflation, with an interim payout of 25.3p in March 2022.
At least one analyst has led to the consensus for the full year being predicted. “Overall, we see at least 5 percent downward risk for the current full fiscal year adjusted earnings of 88p per share,” Jefferies analyst Ahmed Farman said in a note.
SSE has revised its operations to focus on low-carbon enterprises such as electricity networks and renewable energy, and has the largest renewable electricity portfolio in the United Kingdom and Ireland.
“SSE is currently building more offshore wind than any other company in the world, expanding internationally and investing in the carbon-free infrastructure that society needs,” the statement said.
The company is expanding to Japan, where it has said it has formed a joint venture with renewable group Pacifico Energy, with an 80 percent stake in a foreign wind development platform.
“SSE’s highly targeted mix of economically regulated and market-based businesses offers resistance to seasonal variables,” said Gregor Alexander, CFO. “The operational issues we faced in the first half are inherently limited in time and the most important months of our financial year are still ahead.”