Good Energy has completed the sale of its wind and solar farms as part of its strategic shift towards energy services.
The 47.5MW portfolio was purchased by renewable investment firm Bluefield Partners, having previously acquired the nearly 50MW West Raynham solar farm developed by Good Energy in 2015.
The assets, which consist of two wind farms at Delabole in Cornwall and Hampole in South Yorkshire as well as six solar farms across Cornwall, Dorset and Wiltshire, will continue to provide around 15% of the supplier’s customers’ electricity via power purchase agreements (PPAs).
Good Energy sold the portfolio for a total consideration of up to £24.5 million, comprising £0.7 million of revenues received since the lockbox date, cash proceeds of £15.7 million and up to £8.1 million of deferred payments.
As of 30 June 2021, the portfolio was held on its balance sheet a net book value of £17.7 million, with a gross value of £56.8 million and £39.1 million of outstanding debts.
Good Energy said it plans to invest the proceeds from the sale into its subsidiary, Zap-Map, as well as in building a new platform for small scale generators, providing smart metered power export, as part of its commitment to decentralised energy.
Nigel Pocklington, chief executive of Good Energy, said the sale is a “transformational moment” for the retailer and a “fantastic deal” for its stakeholders.
He added: “Last year, we outlined our clear strategic direction to capitalise on a rapidly growing market in decentralised, digitised clean energy and transport services, based on 100% ‘real’ renewable power.
“We are ideally positioned to benefit from this trend through our investment in Zap–Map, the UK’s leading electric vehicle app, and our growing stable of other energy products and services. We expect to make further investments across both transport and decentralised energy to deliver our strategic plan, which we believe has massive headroom for growth.
“Alongside these investments into mobility and energy services, this transaction reduces debt and further strengthens our balance sheet, which is particularly important given the current volatility in the energy market.”
Good Energy’s decision to sell off its renewable assets has been met with frustration by its 25% shareholder and retail rival, Ecotricity.
It was revealed last week that Ecotricity issued a requisition notice to Good Energy requiring the company to convene an extraordinary general meeting of shareholders to consider removing chairman Will Whitehorn from office as well as a special resolution requiring shareholder approval before it disposes of its generation assets.
Speaking to Utility Week, Ecotricity boss Dale Vince said Good Energy’s sale of its generation assets “makes no sense” and will mean it has “no real future as a green energy company”.