Is SSE Cutting Back Renewables Due to Supply Chain Delays?
SSE confirms it will miss its 2030 renewable energy target as macroeconomic pressure and planning delays hit hard.
The energy giant now plans to scale back renewable investment by £3bn (US$4.05bn) over the next five years, with half of that reduction hitting its dedicated SSE Renewables division.
The firm, headquartered in Scotland, has revised its ambitions downward after grappling with supply chain disruption, inflation and a sluggish planning process.
In 2022, SSE committed to delivering 50 terawatt hours (TWh) of renewable energy annually by 2030. That number would have represented around one-sixth of the UK’s current energy demand, based on 2024 figures. It now concedes that target is out of reach.
Planning and inflation reshape SSE’s strategy
The decision to reduce investment coincides with SSE’s preliminary financial results for the 2024/25 fiscal year. While the company says it has met its financial targets, leadership acknowledges that global conditions have forced it to change tack.
Chief Executive Alistair Phillips-Davies says the firm is leaning into its core strengths: “SSE continues to prove the benefits of a portfolio that is built to withstand risk and uncertainty and a strategy that is focused on creating sustainable value.”
However, he also highlights the difficult choices the company is making. SSE will prioritise investment in energy networks while “redoubling our capital discipline across our energy businesses”.
The £1.5bn (US$2bn) reduction to its renewables arm comes just a month after SSE confirmed it would cut 200 roles from that division. While no individual projects have been publicly scrapped, SSE’s future pipeline could be reshaped. At present, the company says it expects to reach seven gigawatts (GW) of installed renewable capacity by the end of 2026/27. One GW of that total is under construction.
Across the UK, the planning system for major energy infrastructure remains slow, often taking years for offshore wind farms and large battery sites to move from application to consent.
At the same time, supply chain inflation is squeezing developers’ budgets. The cost of key materials, services and labour continues to climb, often exceeding original forecasts.
Supply chain crunch hits the sector
SSE is far from alone. Supply chain pressure, volatile financing costs and extended planning timelines are reshaping energy investment across Europe.
In October 2024, Ørsted scrapped its Hornsea 4 project, a planned 2.4 GW offshore wind farm in the North Sea, citing soaring costs and an “increase in the risk to construct and operate the project on the planned timeline”.
Ørsted’s earlier Hornsea 1 wind farm became operational in 2020, but conditions have changed sharply since then. Interest rates are higher, raw materials are more expensive and competition for specialist equipment has intensified.
In February 2025, Equinor confirmed that renewable and low-carbon investments would be capped at US$5bn through to 2027. That was followed by bp’s own strategic shift. The company is now cutting more than US$5bn from its annual renewables budget while increasing fossil fuel activity after a downturn in profits during 2024.
For SSE, the mix of inflation, labour bottlenecks and slow consent decisions has made long-term planning harder. The outcome is a recalibration—less spending in the short term, with hopes that costs stabilise and permitting speeds up.
Large projects still moving ahead
Despite the cuts, SSE insists it remains committed to renewable energy. Its flagship project is Dogger Bank, the future world’s largest offshore wind farm. Once operational, it will have a capacity of 3.6 GW, enough to power six million homes a year.
SSE leads the construction phase of Dogger Bank, with Equinor set to take over operations after commissioning. The project highlights the scale of SSE’s ambition, even if delivery timelines are becoming more uncertain.
Onshore, the company has finished refurbishment of the 40 MW Tummel Bridge hydropower station and made a final investment decision on repowering the 45 MW Lochay station. Construction is under way on the 280 MW Strathy South wind farm, with commercial operations expected in late 2027.
SSE is also advancing battery storage. Projects are ongoing at Monk Fryston and Fiddlers Ferry, helping support grid stability and better integrate intermittent wind and solar power.
Even with that momentum, the reduced investment across the sector suggests the UK’s clean energy transition could slow without stronger policy support, faster planning and a more resilient supply chain. That could put wider climate targets at risk.
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