Good Energy changes tack as it puts its entire renewable asset portfolio up for sale

Good Energy

Chippenham-based renewable energy company Good Energy has revealed that it intends to sell its entire 47.5MW renewable asset portfolio as it shifts from being a renewable utility towards becoming an energy services provider.

The company has outlined a clear strategic direction to capitalise on a rapidly growing market in decentralised, digitised clean energy and transport services based on 100 per cent ‘real’ renewable power. This strategic direction received strong shareholder support throughout its ultimately successful defence of a recent hostile takeover attempt by Stroud-based Ecotricity earlier this year.

The company aims to lead in selected areas of electric transport and decentralised generation as the energy transition continues to gather pace.

Good Energy has invested further in Zap-Map, the UK’s leading electric vehicle (“EV”) mapping platform, which has its headquarters in Bristol. Good Energy first invested in Zap-Map in 2019, and increased its investment again last year.

Good Energy’s generation portfolio was refinanced and restructured in April 2021 as part of a balance sheet simplification exercise. As of the 30 June 2021, the portfolio was valued at £56.8m. 

The Company has appointed KPMG LLP as Financial Advisor regarding the disposal and anticipates completion of this process during Q1 2022.

Zap-Map, the UK’s leading EV mapping platform, currently has more than 290,000 registered users, more than 95 per cent of the UK’s public points on its network and more than 75 per cent of UK EV drivers have downloaded the platform.

The company intends to participate in the current founding round being undertaken by Zap-Map. The anticipated size of the funding round is £7 million. This will allow Zap-Map to embark on its next course of commercial and development goals, which help it expand internationally. 

Alongside the electrification of transport; helping users generate, consume and share their power will be one of the key platforms to delivering a truly decentralised energy network.

Good Energy says it has a strong platform to build from, being already one of the leading players in decentralised energy with more than 175,000 small-scale Feed-in Tariff generation customers.

The company is currently building a new platform for its decentralised energy service business, to enhance existing products and propositions and deliver new services for feed in tariff customers. This platform will enable smart export for solar customers, and the ability to pay actual as opposed to deemed rates.

The company said that the energy supply landscape has changed significantly in recent months. By the spring of 2022 it expects things to return to a “certain normalisation” within the domestic market with significantly fewer participants competing in a more balanced manner on product attributes, differentiated service and price. It also expects, and welcomes, a degree of industry restructure, with an increased level of regulatory scrutiny particularly on capital adequacy, consumer protection and operational and financial governance.

Nigel Pocklington, Chief Executive Officer of Good Energy, said: “I’m very pleased to announce the acceleration of our strategy.

“Good Energy has been at the forefront of the UK’s energy transition for over 20 years, stimulating the growth of renewable power generation. Our job is done as a developer and asset owner as we focus on the new frontiers – the electrification of transport and decentralised energy generation.

“Bigger investment in Zap-Map, will reinforce their market position and help deliver the products and services for EV drivers. We see significant opportunities to scale this business internationally.

“We are also increasing investment in a brand-new platform to better serve our decentralised energy customers. With one of the largest feed in tariff customer bases, we are investing in new products and services to better serve their needs. 

“Whilst the retail energy market continues to experience some short-term challenges, we remain positive about the future. We will largely be a debt free company, with a strong balance sheet for growth.”