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Energy supplier Scottish & Southern Energy (SSE) has unveiled a major capital investment programme to ramp up renewable energy capacity, saying that it will invest £2.5 billion over the next five years to develop renewable energy production facilities.

The Perth-based company showed its commitment to renewables when less than two months ago it acquired Dublin-based Airtricity, a wind farm developer, for £1.08 billion.

At the time of the acquisition, SSE said the plan was to reach 3,500 megawatts of renewable energy generation capacity by 2013, but the reviewed plan is to double the current 2,000 megawatts of capacity over the next five years to 4,000 megawatts. Investment should peak in 2010-11 financial years.

SSE expects that in 2013 its portfolio of renewable energy production will consist of almost 1,500 megawatts of hydro electric schemes, around 2,250 megawatts of onshore and offshore wind farms, and around 250 megawatts of waste-to-energy and biomass developments. The company said it also targets expansion outside the UK and Ireland towards Europe and China.

The company admits that the plan is ambitious, saying that: ‘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.’ However, the policy environment is favourable. By 2020 the UK is aiming for an increase from 1.3% to 15% in the of the proportion of renewables in energy production.

Shares says: A bold programme that will enhance SSE’s strengthen in the long term.