Scottish Power has become the first utility in the UK to exit coal and gas energy generation.
The utility has sold its remaining 2.566MW of conventional energy generation to Drax Smart Generation for £702 million.
Following the development, Scottish Power will invest £5.2 billion to expand its renewable energy generation, transmission, distribution and smart grid capabilities over the next four years.
Scottish Power has over the past ten years closed all of its coal power plants and has 2,700MW of wind capacity operating or under construction to date.
The sale of its conventional energy resources forms part of efforts by Iberdrola’s €3 billion global asset rotation plan, announced in February 2018, to reduce carbon emissions by 30% by 2020, and 50% by 2030 compared to 2007 and be carbon neutral by 2050.
Keith Anderson, chief executive of Scottish Power, said: “This is a pivotal shift for Scottish Power as we realise a long-term ambition. We are leaving carbon generation behind for a renewable future powered by cheaper green energy. We have closed coal, sold gas and built enough wind to power 1.2 million homes.
“Every working day we are investing over £4 million to deliver cleaner, smarter power for customers. From today we can focus solely on making energy generation cheaper, cutting carbon quicker, building smart grids and connecting customers to renewable electric future for transportation and heating.”