Renewable energy has generally been an area of significant investment in recent years, but SSE, one of the UK’s major power companies, has just announced it’s cutting several projects, as well as its workforce, in an attempt to mitigate rising financial pressures.
What is being cut?
Renewable energy comes in many forms, but in the UK the common types include wind, solar and hydroelectric. Large wind and solar farms are growing across the country, including in Scotland. Indeed, SSE Renewables, the division of the company responsible for this area of power generation, already operates several large Scottish wind farms, as well as multiple hydroelectric power sites, and has been looking to invest further.
SSE is an international company, but its headquarters are in Scotland. Despite this, and despite its previous role as a leader in the renewables industry, it has announced that many future renewable projects have been cancelled. Others will be indefinitely paused. This comes alongside the cutting of approximately 150 jobs, as much as 10% of its overall staff, following 55 job losses in the firm’s Northern Ireland division.
Why?
Stephen Wheeler, the director of SSE Renewables, announced the cuts via a memo to employees. In it, he expressed regret for the decision while citing multiple causes, including escalating costs throughout the supply chain and increases in interest rates alongside a reduction in market value. The process of identifying the potential cuts was part of an efficiency review to try to manage the end of what had been a prolonged period of growth.
What’s next?
For the staff concerned at SSE, there will be a consultation process regarding the redundancies, which will include relevant trade unions. It is hoped that some employees will be able to move to different roles in other parts of the company. Meanwhile, there is nothing stopping solar panel installation Tewkesbury and other parts of England, such as that available at https://www.precisiongreenenergy.co.uk/renewables/solar-panel-installation/tewkesbury.
The decision by SSE does not seem to align with the government’s stated aim to increase investment in renewables. The full impact of the announcement remains to be seen.