Corporate Update

Scottish & Southern Energy PLC
06 July 2005



SSE GENERATION AND VIKING ENERGY LTD PLAN FOR 600MW WIND FARM

SSE Generation, the subsidiary of Scottish and Southern Energy ('SSE'), and
Viking Energy Ltd ('Viking Energy') have signed a Memorandum of Understanding
which is expected to lead to the establishment of a joint venture aimed at
developing on the Shetland Islands a wind farm with a capacity of up to 600MW
(megawatts).

Viking Energy is the company formed to represent Shetland Islands Council's
interests in large-scale wind energy development in Shetland. Its involvement
would make the 600MW scheme the largest community-backed wind farm development
in Europe.

SSE Generation and Viking Energy currently have separate proposals for 300MW
wind farms in the central mainland of Shetland. They expect that the proposals
will be combined and lead to the creation of a plan for a single 600MW wind
farm. Combining their separate proposals would enable the two organisations
manage all of the issues surrounding the development of major wind farms, such
as environmental assessment, as part of a single project.

Shetland is the windiest part of the UK which is, in turn, the windiest country
in Europe. A wind farm on the Islands could be expected to have a load factor of
up to 50%, meaning it would produce electricity at close to its maximum capacity
for around half of the time. This would make it the most productive wind farm in
Europe.

The development of the 600MW wind farm is subject to, amongst other things, the
formal establishment of the joint venture between SSE Generation and Viking
Energy, consent for the wind farm being secured from the Scottish Executive
under Section 36 of the Electricity Act and on the provision of an undersea
cable connecting the Islands to the electricity transmission system on the
Scottish mainland.

At present, the Shetland electricity system is not connected to the electricity
network on the mainland. The Islands are currently supplied by a 67MW power
station at Lerwick, constructed in 1953, and by electricity generated at the
Sullom Voe oil terminal and the existing Burradale wind farm.

The provision of an undersea cable by Scottish Hydro-Electric Transmission Ltd,
also a subsidiary of SSE, requires Ofgem to approve the necessary investment.
This means developers of renewable energy projects in Shetland have to
demonstrate the viability of their investment proposals.

Ian Marchant, Chief Executive of Scottish and Southern Energy, said: 'Our
agreement with Viking Energy is a major step forward for the renewable energy
ambitions of Scotland, the Shetland Islands and SSE. It brings a significant
step closer the development of the most productive wind farm in Europe.

Combining our proposals with Viking Energy should lead to a larger and more
coherent development on the Islands. In looking at the issues around an undersea
cable, we also need to assess what should be the long-term role of the existing
power station in the Islands. Despite the many challenges, I am optimistic that
we will be able to demonstrate the viability of an undersea cable to the
mainland.'

Enquires to:

Julian Reeves, Corporate Communications          0870 900 0410
Jennifer McGregor, Corporate Communications      0870 900 0410



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