Good Energy secures largest ever clean power deal & reports rising revenues

Juliet Davenport, CEO and Founder, Good Energy

Clean power company Good Energy has renewed a deal with Danish offshore wind energy giant Ørsted. The agreement means 12% of the output of Ørsted’s Westermost Rough Wind Farm, located five miles off the Yorkshire coast, will be used to power Good Energy customers’ homes and businesses.

Good Energy has more than 1500 contracts with renewable generators, ensuring that 100 per cent of its customers’ usage is matched with genuine clean power. The new agreement, announced as Good Energy publishes its annual financial results for 2019, constitutes the most significant in the company’s history, securing enough power for over 36,000 average homes.

The renewed deal is for three years and provides Good Energy with the ability to increase the percentage offtake from 12 per cent in year one to 17 and 28 in years two and three respectively. Building on the success of Good Energy and Ørsted’s partnership, which began in 2017, it provides security for Good Energy’s customer growth. The company’s business customer volume has more than doubled in the last three years and has stated its ambition to replicate this within the domestic market.

Westermost Rough Wind FarmJuliet Davenport, CEO and Founder, Good Energy, said: “Offshore wind is a huge British success story and we are proud to play a part in that. Building on our partnership with Ørsted allows us to continue to build on our ambition to transition to a 100% renewable energy system, empowering more customers to use clean power and ultimately tackle climate change.”

Kyle Worthington, Head of Power Origination at Ørsted said: “We continue to enjoy collaborating with Good Energy and this extension to our cooperation is testament to that. Together, we share ambitions to create a green and climate-friendly energy system. It is great to see them raising the standard for what it means to be a 100% renewable energy supplier and we are happy to partner with them on this journey.”

The news comes as Good Energy released its preliminary results for the year ended December 2019. Revenues have risen by more than six per cent to £124.3 million. However, gross profit was £31.7 million, a decrease of 5.4 per cent with a gross profit margin of 25.5 per cent.

Juliet Davenport, Founder and Chief Executive Officer of Good Energy, said: “In 2019 Good Energy made great strides to stay ahead of the market in its transition towards innovative technology-based clean energy services. We are operationally resilient, despite a challenging retail market, underpinned by a good cash position and a cash generative business model.

 “We are building the infrastructure and systems to underpin future growth. Our investment in the Kraken customer technology platform gives us the scalability and flexibility to serve more customers with more services, whilst reducing the cost of adding new customers. Our investment in Zap-Map [an app which helps motorists locate the nearest charging point], and launch of business electric vehicle charging sets out a road towards clean transport – a crucial pillar of a zero carbon UK, alongside electricity and heat.

 “We are witnessing a sea change in the relationship the UK has with energy – a shift from supplying to sharing. We have helped drive this for 20 years and today, as decentralisation, digitalisation and decarbonization become the new norms, are anticipating a gearshift that will lead to significant growth opportunities. We will continue to focus on innovative solutions that hasten a cleaner, greener future. With our strong market presence this is an exciting time for Good Energy’s growth strategy.”