ENERGY group Scottish-Power has become the UK’s first energy company to abandon coal and gas generation for wind power after selling its traditional generating business to the Drax group for £702 million.

Assets sold include Cruachan power station, hydro-power schemes in Lanarkshire and Galloway, and Daldowie fuel plant in Glasgow. The move is part of a £5.2 billion programme to invest in renewables and smart grids to make cleaner and cheaper electricity with 100% generated from clean wind power.

Keith Anderson, ScottishPower’s chief executive, said: “This is a pivotal shift for ScottishPower as we realise a long-term ambition.

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“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 milion 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.”

Ignacio Galán, chairman and chief executive of ScottishPower’s parent company, Spanish multinational Iberdrola, said energy companies had to 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,” he said.

The National:

ScottishPower has closed all of its coal plants in the past decade, and with the sale of the remaining gas and hydro stations, now generates 100% of its electricity from wind power.

It currently has 2700 megawatts (MW) of wind power capacity operating or under construction in the UK, and a pipeline of future projects capable of generating more than 3000 MW.

Welcoming the move, Dr Sam Gardner, acting director at WWF Scotland, said: “This is a hugely welcome move from Scottish Power and another clear signal that the clean energy transition is accelerating.

“Too often people talk about renewables being the future but this just shows how critical a role they already play in the here and now – cutting emissions, creating jobs and keeping our lights on.

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“The latest climate science tells us that we will need to see this kind of transition replicated around the world and we’re proud to see a Scottish company creating a portfolio that works to keep people and nature safe.”

Energy Minister Paul Wheelhouse added: “We welcome Scottish Power’s decision to focus its efforts and investments on renewable energy and smart grids which reflects our commitment to securing a low-carbon future across electricity, heat and transport as we seek to avert the negative impact of climate change.

“The Scottish Government looks forward to working with ScottishPower to ensure the company’s planned investments maintain and grow genuine benefits for Scotland’s environment, communities and economy. We also welcome assurances from Drax that, if acquisition is approved, all existing jobs will be retained in Scotland.”