Renewable Energy Plans

Scottish & Southern Energy PLC
26 March 2008


      STATEMENT OF RENEWABLE ENERGY PLANS AND NOTIFICATION OF CLOSE PERIOD


Scottish and Southern Energy plc ('SSE') has completed a review of its plans and
investment opportunities in renewable energy following its acquisition of
Airtricity Holdings Limited ('Airtricity') on 15 February 2008.

Tackling climate change and securing future supplies are the twin goals of
energy policy in the UK, Ireland and throughout the European Union ('EU'). In
line with that, the EU has adopted a legally-binding target of 20% for the
proportion of all energy to be derived from renewable sources by 2020. This will
clearly lead to a dramatic increase in the amount of renewable energy that will
be required in the future. For the UK, that increase is set to be from 1.3% to
15%; for Ireland, it is set to be from 3.1% to 16%.

Against this background, SSE will continue to focus on enhancing and creating
value for shareholders from its energy and infrastructure related businesses in
the UK and Ireland and from the development of an international business
focusing on renewable energy.


Key Points

• 2,000MW of renewable energy capacity milestone passed in March 2008

• New renewable energy target of 4,000MW for 2013 in UK and Ireland

• Over £2.5 billion capital investment in renewable energy in UK and Ireland in
  five years to 2013

• Around £500m equity investment in renewable energy in new markets and
  technologies in five years to 2013

• Total investment programme over £6.5 billion in five years to 2013



2,000MW renewable energy capacity milestone passed in March 2008

SSE now owns and operates just over 2,000MW of capacity for generating
electricity from renewable sources, comprising hydro electric schemes (including
pumped storage), wind farms and the UK's largest dedicated biomass energy
facility at Slough. The 2,000MW milestone was passed following the recent
commissioning work undertaken at a number of SSE's wind farms in the past few
weeks. Of this capacity, almost 1,800MW is in the UK, with the remainder being
in the Republic of Ireland.

In addition, SSE has, in the UK and Ireland, just over 400MW of onshore wind and
hydro capacity with full consent and/or under construction. It also has 545MW of
offshore wind capacity with full consent in the UK and Europe.

Looking ahead, SSE also has almost 1,000MW wind farm capacity in the UK and
Ireland which is at an advanced stage in the planning process.


New renewable energy target for 2013

When it entered into the agreement to acquire Airtricity, SSE said it expected
to have over 3,500MW of operating renewable capacity in the UK and Ireland in
2013. Following a comprehensive review of its renewable energy projects, SSE now
expects this to be around 4,000MW. On this basis, it will double in five years
its renewable energy capacity.

While the achievement of this new target is subject to projects securing all of
the necessary approvals in a timely manner, adequate electricity network
capacity and the maintenance of a stable public policy framework which
encourages investment in renewable energy, SSE expects its portfolio in 2013
will comprise: almost 1,500MW of hydro electric schemes; around 2,000MW of
onshore wind farms; over 250MW of offshore wind farms; and around 250MW of
waste-to-energy and biomass developments.

In addition, SSE is now pursuing onshore and offshore wind farm developments in
Europe and onshore developments in China which could add well over 500MW to its
renewable energy portfolio by 2013.


Over £2.5 billion capital investment in renewable energy in the UK and Ireland

The delivery of over 2,000MW of renewable capacity in the UK and Ireland by 2013
is likely to require capital investment of over £2.5 billion in onshore wind,
offshore wind and hydro electric schemes over the next five financial years,
with investment currently expected to peak in 2010-11.


This includes the fully-consented 504MW offshore wind farm development at
Greater Gabbard off East Anglia, in which SSE currently has a 50% stake, and for
which turbines have been reserved. SSE expects this development to proceed
shortly and work on the first phase to get under way later this year.


The investment profile for the next five years is subject to a number of
factors, including constraints on the supply of wind turbines and the impact of
those constraints on their procurement. Nevertheless, the overall supply
position is expected to improve over the next few years, and SSE's enhanced
position as a wind farm developer following the acquisition of Airtricity should
enable it to secure good value from suppliers.


Around £500m equity investment in renewable energy in new markets and
technologies

In addition to its investments in the UK and Ireland, SSE is also expecting to
invest around £500m in renewable energy in new markets and technologies over the
next five years: onshore and offshore wind farms in Europe (principally
Portugal, Sweden, the Netherlands, Italy and Germany); onshore wind farms in
China; waste-to-energy; and marine energy in the UK and Ireland. This investment
will largely be on an equity basis, with non-recourse debt expected to account
for up to 75% of the total cost of the investment.


In addition to its investment in technologies which have the scale to make a
substantial contribution to meeting energy needs in the near future, SSE also
has a range of investments in emerging technologies.


This includes a 13.3% stake in Solarcentury, the UK's leading independent solar
photovoltaics company, and is the company's preferred installer. SSE also has a
50% stake in Aquamarine, the marine energy company which is developing wave
power and tidal power devices for comprehensive testing at the European Marine
Energy Centre in Orkney.

Including Aquamarine, SSE has during 2007/08 committed to investing over £30m in
a variety of emerging technologies designed to deliver secure, reliable and
cost-effective low carbon energy systems. The most recent technology investment
made by SSE is in the development of clean and reliable fuel cell-based combined
heat and power systems for the light industrial, commercial and residential
markets in the UK and Ireland via a joint venture with Intelligent Energy.


Wider programme of investment

SSE's investment in renewable energy will be part of a wider programme of
investment throughout SSE's electricity generation and networks businesses and
its gas storage business which is currently projected to total over £6.5 billion
over the five years to 2013.


This includes the 840MW combined cycle gas turbine power station at Marchwood,
near Southampton, in which SSE has a 50% stake, and which is on course to be
completed and in commercial operation in time for the winter of 2009/10.


Close Period

SSE is hosting a visit for analysts today at its Slough Heat and Power plant,
focusing on renewable energy. It will enter its close period on Tuesday 1 April,
prior to the publication on 29 May 2008 of its preliminary results for the year
to 31 March 2008. It expects to report results which are in line with the
consensus of brokers' forecasts.


Ian Marchant, Chief Executive of SSE, said:

'The decision earlier this month by the EU Council to adopt within the next year
binding national targets for increasing the amount of green energy is just the
latest illustration of the long-term value in generating electricity from
renewable sources.


'The acquisition of Airtricity has given SSE a stronger platform from which to
deliver renewable energy in the UK, Ireland and Europe - and in China as well.
The range of investment opportunities in renewables which we now have will
contribute significantly to the growth of SSE over the next decade.


'Our aim to grow our renewable energy capacity so significantly by 2013 is
realistic and achievable, but is inevitably subject to the maintenance of a
policy and planning framework that recognises the scale of the climate change
and energy security challenges which we will face in the coming years.


'The logic for renewable energy is compelling and we have the commitment and
financial strength to realise the opportunities that will flow from it -
opportunities that were materially enhanced by the acquisition of Airtricity.
SSE is on course to become an internationally significant player in the
renewables sector, and this will support the achievement of our first
responsibility to shareholders: building on our track record to continue
delivering sustained real growth in the dividend throughout the next decade.'








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