SSEN Transmission has published a new economic report setting out the significant economic benefits associated with its planned £29billion investment in new and upgraded electricity transmission infrastructure across the north of Scotland.
The report, titled ‘Re‑energising the North: Transforming Scotland’, provides an update on the business’s previously outlined economic analysis on plans to invest billions in mission-critical grid infrastructure, providing further insight into the scale of economic opportunity associated with the investment programme.
The analysis demonstrates how investment in the electricity transmission network will play a central role in supporting Scotland and the UK’s transition to secure, affordable, clean power, while delivering substantial long-term economic growth.
The report reaffirms SSEN Transmission’s programme as one of the largest private infrastructure investments in Scotland’s history, with around £29bn of planned investment across the north of Scotland in the next five years, and it details the extent of the economic opportunity across the region.
Using advanced economic modelling to analyse the impact of clean power infrastructure investment, the report’s findings conclude that SSEN Transmission’s investment:
- Will support up to 10,000 jobs in the north of Scotland, and 24,000 across Scotland;
- When added to investment by other transmission operators and investment in generation will add around £60bn to UK economic output - with the Scottish economy up to 3% larger over the long term;
- Will deliver long-term improvements in productivity, wages and economic resilience, with employees moving into higher-value roles and key sectors expanding permanently; and
- Will create unique opportunities for Scottish suppliers, businesses and communities across multiple sectors, including forestry, peatland restoration, aggregates and concrete too.
The findings highlight the importance of ensuring that the benefits of investment are felt locally, with thousands of skilled jobs, increased supply chain activity, and investment flowing into communities across the north of Scotland.
The report, developed using advanced modelling techniques widely used by governments and validated by leading economic experts, demonstrates that while major infrastructure investment can create short-term pressures, the long-term economic benefits are significant and enduring.
Rob McDonald, Managing Director of SSEN Transmission, said: “Here in Scotland, we're entering a period of unprecedented investment in our electricity transmission network, with significant upgrades planned across the north of the country over the coming decade.
“Our investment programme represents one of the most substantial developments of the transmission network in its history, providing the infrastructure needed to support a more secure, flexible and low-carbon energy system.
“This report highlights the wider benefits that come with that investment – from supporting jobs and supply chains to helping deliver sustainable economic growth across the communities and regions we serve.”
Energy Minister for the UK Government, Michael Shanks, said: "Investment into our electricity grid is creating tens of thousands of good, well-paid jobs in Scotland while growing the economy.
"We are delivering the biggest upgrade in our electricity network for a generation, benefitting the whole country by connecting more homegrown clean power, so we can build energy independence from fossil fuels and lower bills.”
Energy Minister for the Scottish Government, Stephen Gethins, said: “Scotland is a global powerhouse in renewable energy, with a strong pipeline of future projects to grow that capacity even further, and strengthen our energy security by decreasing our reliance on imported fossil fuels.
“Transmission infrastructure is key to unlocking the full benefit of the clean, affordable and secure power that Scotland can generate from its own resources, by efficiently connecting with the people and businesses who rely on it every day both in Scotland and beyond.
“I greatly welcome this investment from SSEN Transmission, as well as the wider economic benefit to communities across Scotland from the creation of new jobs and supply chain opportunities for businesses.
“This is exactly the kind of long-term commitment that will help Scotland lead the way to a clean energy future, delivering real benefits for households and businesses while supporting the Scottish Government’s ambitions for a just and prosperous transition to net zero.”
Claire Mack, Chief Executive of Scottish Renewables, said: “This report demonstrates the significant economic value that investment in our electricity networks is already delivering across Scotland, supporting local jobs and supply chains throughout the country.
“A modern, resilient grid is essential to unlocking Scotland’s renewable energy potential and delivering secure, affordable power to homes and businesses. The investment underway by SSEN Transmission is creating opportunities for suppliers right now, while laying the foundations for future growth.
“As Scotland’s clean energy economy continues to expand, network infrastructure must keep pace. The grid sits at the heart of the energy transition, helping to bring together the opportunities across renewable generation, ports and manufacturing.”
The report also sets out how investment in the transmission network will unlock further private investment in renewable energy, acting as a catalyst for wider economic activity across Scotland and the UK.
As the UK and Scottish governments pursue energy security and clean power targets, SSEN Transmission’s programme will play a critical role in connecting new renewable generation and ensuring that lower-cost, homegrown energy can be transported to where it is needed.
In concluding, the report reiterates the assertion that there can be no successful energy transition without transmission infrastructure - and no sustainable transition unless the economic benefits are shared with the communities that will help to shape and host it.
Read the report, in full, here.