Corporate Update

Scottish & Southern Energy PLC 10 September 2007 10 September 2007 Corporate update Scottish and Southern Energy plc ('SSE') has signed four agreements with GD Power Development Co Ltd (a subsidiary of China Guodian Corporation, one of China's major energy companies) to support the development of four new wind farms in north east China. SSE Energy Supply Ltd will purchase around two million Carbon Emissions Reduction Certificates (CERs) over a period of five years from the start of 2008. The signing ceremony took place today 10th September 2007 in Beijing, China, and was attended by SSE's Chief Executive Ian Marchant, and followed the announcement in June 2007 that SSE had finalised the first of the four agreements. Under the Clean Development Mechanism (CDM) established under Article 12 of the Kyoto Protocol, countries - and therefore companies - can meet their carbon emission reduction targets by purchasing CERS from CDM-approved carbon reduction projects in the developing world. This is the first time that SSE has directly acquired primary CERs from a project. Each of the four wind farms is expected to have an installed capacity of around 50MW and will displace carbon emissions from coal-fired power stations in the region, leading to around two million tonnes of carbon dioxide being avoided. The construction of the first of the wind farms, GD Xingcheng Haibin is already under way and the last of them is expected to be commissioned during 2008. In May 2007, SSE announced that it has set itself a target to reduce by 20% over 10 years to 2016 the amount of carbon dioxide per kilowatt hour of electricity produced at power stations in which it has an ownership or contractual interest. It said its target would include CERs from specific generation projects under the CDM, but would exclude those which are not related to a specific generation project. Contacts: Sally Fairbairn Investor Relations Manager 01738 456 491 Sharron Miller- mckenzie Press Office Manager This information is provided by RNS The company news service from the London Stock Exchange

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