ScottishPower — a subsidiary of Basque energy giant Iberdrola — said it has become the first integrated energy company in the UK to shift completely from coal and gas generation to wind power after completing the sale of its traditional generation business to North Yorkshire-based power company Drax for £702 million.
ScottishPower has closed all of its coal plants and with the sale of its remaining gas and hydro stations the company now generates 100% of its electricity from wind power.
ScottishPower has 2,700 megawatts (MW) of wind power capacity operating or under construction in the UK, and a pipeline of future projects capable of generating more than 3,000 MW.
Iberdrola CEO Ignacio Galán said: “Energy companies must be part of the solution to climate change.
“Iberdrola is acting now to cut carbon emissions 30% by 2020 and be carbon neutral by 2050.
“The sale of these generation assets is consistent with our strategy.”
ScottishPower CEO Keith Anderson said: “This is a pivotal shift for ScottishPower as we realise a long-term ambition.
“We are leaving carbon generation behind for a renewable future powered by cheaper green energy. We have closed coal, sold gas and built enough wind to power 1.2 million homes.
“Every working day we are investing over £4m to deliver cleaner, smarter power for customers.
“From today we can focus solely on making energy generation cheaper, cutting carbon quicker, building smart grids and connecting customers to renewable electric future for transportation and heating.”
ScottishPower said it is investing £5.2 billion to 2022 with a focus on renewable energy, enhanced grid networks and smart technology for customers.
ScottishPower said that in offshore wind alone in the UK it has a pipeline of 2,900 MW beyond the 714 MW under construction at East Anglia ONE.
The company is closely following the proposals by the Crown Estate and Crown Estate Scotland with ambitions to secure additional development areas in the next round of offshore wind leases throughout the UK.