Completion of Glendoe Project

Scottish & Southern Energy PLC 07 January 2008 COMPLETION OF KEY PHASE OF GLENDOE HYDRO ELECTRIC PROJECT The development of the large-scale hydro electric scheme by Scottish and Southern Energy plc ('SSE'), at Glendoe near Loch Ness, has completed a significant phase with the re-emergence from under ground of the 200 metre long tunnel boring machine (TBM). This means that the tunnelling phase of the project, which began in September 2006 when the TBM broke into the hillside for the first time, has been completed. In the 16 months of almost non-stop tunnelling, the TBM has created eight kilometres of tunnels and climbed over 600 metres in height. Development of the tunnels will allow water from the new reservoir, being built over 600 metres above Loch Ness, to reach the under ground power station near the south east corner of the loch before being discharged into the loch itself. With an installed capacity of around 100MW (megawatts), Glendoe will be Scotland's second largest conventional hydro electric station and the first large-scale station to be built since 1957. Its development is requiring investment by SSE of over £140m, and it remains on schedule to be able to generate electricity in the first part of 2009. The power station will produce around 180 million units of electricity in a year of average rainfall and when synchronised will be able to start generating electricity at full capacity in 30 seconds. Ian Marchant, Chief Executive of SSE, said: 'The completion of this phase of the Glendoe development is significant. It is a unique, large and complex project and I am delighted with the progress that is being made. Effective delivery of major projects is of growing importance to SSE, especially in the light of our agreement to acquire Airtricity, and the success so far of Glendoe bodes well for other investment projects. There is, however, still much work to do at Glendoe and the priority is to get it done safely and efficiently.' Note: On Friday 4 January 2008, SSE announced that it had entered into an agreement to acquire Airtricity Holdings Limited, the Dublin based renewable energy company. This information is provided by RNS The company news service from the London Stock Exchange MSCEAAFXESLPEFE

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