To be known as SSE Renewables, the new entity forms part of SSE's strategy to position itself as "a leading energy company in a low carbon world", with a greater focus on core businesses including renewables.
Under the plans, SSE Renewables will comprise SSE's existing operational assets, and assets under development and construction in the UK and Ireland in both onshore and offshore wind; hydro electricity; and pumped storage.
SSE believes the move will help secure growth through entering into strategic and financial partnerships and joint ventures with organisations to decarbonise the electricity system.
"The creation of SSE Renewables will build on SSE's established skills in asset management and large capital project development and put the business in a strong position to evolve and succeed in a rapidly-changing electricity sector," said SSE chief executive Alistair Phillips-Davies.