Centrica, the parent company of British Gas, has announced a new investment strategy which will see the company invest £600-800 million a year until 2028 in renewables.
Centrica hopes to invest “up to £4 billion over the next five years” in renewables, flexibility and customer decarbonisation measures like smart meters.
The company says it hopes to deliver “around £800 million of sustainable adjusted operating profit on average each year from our Retail and Optimisation activities”.
The company will invest in its own projects like the recently operational 18MW Codford Solar project, or joint projects with partners.
On security of supply and flexibility, Centrica says they: ”have experience in batteries and gas-peaking plants, and we already own a range of sites with valuable grid connections.” The company completed the construction of the 49MW Roosecote battery storage site in Cumbria in 2018.
Investment will also go towards “customer activities to cement our leading market positions and unique workforce. We will invest in our own Smart Meter Asset provision and we will consider further opportunities such as financing or leasing heat systems to households.”
Chris O’Shea, group chief executive at Centrica said: “The new green investment strategy we’ve announced will see us invest several billion pounds in the energy transition, creating thousands of new well-paid jobs. Our robust balance sheet has allowed us to invest heavily in the UK and Ireland’s energy security and will make sure that our customers have cleaner energy at the right price.”
Centrica recorded profits of almost £1 billion in the first half of 2023. Profits before tax and interest reached over £3.3 billion in 2022. Centrica remains the largest electricity and gas supplier in the UK, covering about 25% of households, though Octopus Energy has grown rapidly in recent years and currently sits just behind Centrica.