Pennon Group PLC (LSE:PNN, OTC:PEGRY) has acquired three renewable energy projects in a bid to improve its environmental credentials by 2030.
Pennon, which owns South West Water and Bristol Water, purchased the three solar projects in Buckinghamshire, Aberdeenshire and Cumbria in a bid to reach net zero by the end of the decade.
Some £85mln is expected to have been spent on the projects once they are finished, Pennon said on Tuesday, with these coming under its long-term sustainable growth strategy.
South West is among a host of UK water firms to have been slapped with fines in recent years over sewage spills, having been ordered to pay £2mln in April over six offences.
Following the spate of sewage spills, regulator Ofgem is expected to introduce tougher environmental measures on water firms next year, likely prompting higher capital expenditure, according to analysts.
Though Pennon’s investment is not directly linked to bettering water quality, it comes under the firm’s commitment to improving environmental infrastructure in the coming years.