Green energy company announces pivot to clean energy and transport services, as it announces plans to invest further in Zap Map and develop new solar projects
Good Energy has put its 47.5MW power generation portfolio up for sale, confirming its intention to transition away from a being a renewables utility and towards becoming a green energy services provider.
The company, which was founded two decades ago, announced yesterday that proceeds from the proposed sale would go towards opportunities in electric transport and decentralised energy.
It said its plan to sell its generation portfolio and hone its focus on the development of decentralised, digitised clean energy and transport services had received strong shareholder support, after the company fought off a series of hostile takeover bids from rival green energy company Ecotricity this autumn.
It said its clean energy portfolio had been valued at £56.8m in June 2021, after Good Energy undertook a “formal re-evaluation exercise” because their historic carrying value was not fully reflective of their open market value.
“Good Energy has been at the forefront of the UK’s energy transition for over 20 years, stimulating the growth of renewable power generation,” said Good Energy CEO Nigel Pocklington. “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.”
The company said it intended to increase its investment in electric vehicle mapping app Zap Map, which is expecting to raise £7m by Spring through its latest fundraising round.
“Bigger investment in Zap Map, will reinforce their market position and help deliver the products and services for EV drivers,” Pocklington said. “We see significant opportunities to scale this business internationally.”
The company also confirmed it would invest £1m in a new platform for its decentralised energy service platform designed to make life easier for its 175,000 feed-in-tariff solar generation customers. The platform will enable “smart export” for solar customers allowing them to access actual instead of deemed rates for the power they provide, it said.
Good Energy said the platform, which it hopes to roll out in the first half of next year, will see payback within 12 months.
In a financial statement, Good Energy said it expected to achieve its full-year expectations despite the ongoing challenges faced by the energy market, which has seen a host of operators declare bankruptcy in recent months following a surge in wholesale energy prices.
“Continued volatility in the energy industry will put short term financial pressure on the business, however, there remains a route to achieve Good Energy’s full year expectations,” the statement reads.