Scottish and Southern to build Shetland Isles wind farm

Energy group Scottish and Southern announced several new energy projects as it completed a programme to refinance its debt, raising almost £4 billion in the past nine months. However, the company said it may also look at the bond market later this year to finance its ambitious growth plans.

In association with its partner, Viking Energy, the group has submitted plans to build a wind farm in the Shetland Islands that could power 500,000 homes. It plans to approach the European Investment bank for funding the green energy project.

The company also has plans to set up two combined-cycle gas turbines of 435 MW each at Abernedd, in Wales. A pumped storage facility alongside its Sloy hydro electric power station near Loch Lomon is also planned. Planning applications have also been submitted to the relevant authorities.

The UK's second-largest energy producer said it would consider submitting proposals for EDF's UK power network if it were put up for sale by the French group to reduce debt.

Last week, news reports had pointed to the possibility of EDF selling its assets to help fund its investment in new nuclear power stations.

The company hiked its final dividend payment by 9 per cent to 46.2p.It  said it planned to increase its payout by "at least" 4 per cent more than inflation in the current year. The total dividend for the year increased 9.1 per cent at 66p.