Corporate Update

Scottish & Southern Energy PLC
28 July 2005

28 July 2005



                        SCOTTISH AND SOUTHERN ENERGY PLC

DEVELOPMENT OF SCOTLAND'S FIRST LARGE-SCALE HYDRO-ELECTRIC POWER STATION FOR 50
                                     YEARS



Perth-based Scottish and Southern Energy (SSE) has decided to proceed with the
development of Scotland's first conventional large-scale hydro-electric power
station for 50 years, following the decision by Scottish Ministers to give
consent for the development under Section 36 of the Electricity Act 1989.

The new hydro-electric scheme is at Glendoe in the western end of the
Monadhliath mountains, to the east of Fort Augustus in Inverness-shire. The
power station itself, which will be built under ground, will be located close to
the south east corner of Loch Ness.

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, when the Errochty station in
Perthshire, which has a capacity of 75MW, was opened.

The power station will produce around 180 million units of green electricity in
a year of average rainfall, and will be very flexible and able to help to meet
major fluctuations in demand for power.  When synchronised, it will be able to
start generating electricity at full capacity in 30 seconds and when operating
at maximum capacity, Glendoe will be able to generate enough electricity to
power around 250,000 homes.

The scheme involves collecting water from around 75 square kilometres - either
directly or via 8 km of underground tunnels - in a new reservoir over 600 metres
above Loch Ness.  The drop from the reservoir to the turbine at the side of the
loch - the 'head'- is, at over 600 metres, the biggest of any hydro station in
the UK.  The efficiency of a hydro station increases with the size of the head,
making Glendoe the most efficient hydro scheme in the country.

The new reservoir will be situated at the head of Glen Tarff and will be
impounded by a dam approximately 1,000 metres long, making it the longest dam in
SSE's portfolio.  The dam will be shaped to suit the topography and geology of
the area and will be 35m at its highest point.

Following substantial refinements made to the scheme during the planning
process, the overall cost of the project is expected to be around £140m.
Preparatory work at the site will start immediately and full construction will
start in the spring of 2006.  Construction itself is likely to take around three
years, followed by a period of commissioning which is expected to be completed
towards the end of 2008.  On this basis, the new scheme is likely to be
generating electricity commercially from the winter of 2008/09. Up to 400 jobs
are expected to be created during the construction phase.


Ian Marchant, Chief Executive of SSE, said:

'SSE has a long tradition of investment in and management of renewable energy
schemes in the north of Scotland, and we will approach this development in a
responsible and sensitive way, in keeping with the traditions of our
predecessors in the old North of Scotland Hydro-Electric Board.  Glendoe is a
very significant project which will have to be managed carefully and sensitively
during the demanding construction phase.

Glendoe complements our investment in refurbishing our existing hydro stations,
in onshore wind energy and in biomass - as well as our interests in offshore
wind, marine energy, micro generation and carbon capture.  It confirms that
there is much more to renewable energy than a dash for wind.  As the most
efficient hydro scheme in the country, it will be exceptionally flexible and
will have a significant part to play in meeting peak demand for power.  The
Glendoe development will help keep SSE at the forefront of renewable energy
developments in the UK.'


For Further information contact:

Alan Young Director of Corporate Communications                    0870 900 0410

Denis Kerby IR and Media Relations Manager                         0870 900 0410

Andrew Dowler, Financial Dynamics                                  020 7831 3113





                      This information is provided by RNS
            The company news service from the London Stock Exchange