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SSE Green Energy Revenue Offsets Lower Flexible Thermal Spreads

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UK-based electricity infrastructure company SSE reported a roughly 4% rise in renewable operating profits, leveraging newly added clean capacity to offset lower commodity prices and unfavorable weather, the company said on Thursday.

The group's green portfolio showed notable resilience in a fluctuating market.

Within the SSE's renewables division, adjusted operating profits advanced to 1.08 billion British pounds ($1.45 billion) from 1.04 billion pounds, as the newly commissioned capacity successfully offset the resource volume deficit caused by unseasonably weak wind and hydro weather conditions throughout the UK and lower overall realized hedge prices, it said.

Conversely, dispatchable energy assets faced tighter margins.

Profits across SSE's flexibility segment, comprising gas-fired thermal plants, multifuel generation assets, and commercial energy supply operations, slumped to 375.5 million pounds from 433.5 million pounds year over year due to challenging market conditions, planned infrastructure outages, and lower power generation volumes.

Looking forward the company expects earnings for SSE Renewables to remain flat compared to 2025/26, as ongoing capacity additions continue to balance out lower merchant power prices.

To accelerate long-term grid electrification plans, the infrastructure giant deployed a record 3.6 billion pounds in capital expenditure.

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