Ovo has revealed it is seeking to invest in more companies, following its purchase of a minority stake in digital marketplace Renewable Exchange.
Renewable Exchange was founded in 2016 and already has 717 generators with an installed capacity of more than 1GW connected to the platform.
Ovo says the platform will benefit from its advisory capability, adding that its approach is to give Renewable Exchange “space and support to execute on its vision”.
Speaking to Utility Week, Steve Ackroyd, the challenger energy brand’s director of business development, said that more investments were planned.
“We’re always looking for companies to invest in that share our values and can bring us closer to delivering on our mission to bring clean affordable energy to more people.
“Earlier this year we invested in energy blockchain pioneer Electron”, he said.
Ackroyd will join the board of Renewable Exchange as investor director. He believes it is “critical” that new generators optimise the value of power purchase agreements (PPA).
He said: “In a subsidy free world, a PPA is going to provide 100 per cent of the revenue for new generators so it’s critical that they optimise their value. Renewable Exchange’s digital platform is going to be essential to optimising renewable energy assets and will support new clean energy projects getting built.
“The more that we’re able to digitise the energy system, and drive down the cost of renewable energy generation, the cheaper it will be for energy customers.”
Ackroyd did not rule out Ovo investing more into the company in the future when asked about the possibility of acquiring a larger stake.
He added: “We are invested in supporting the growth of Renewable Exchange and will make future investment decisions as and when necessary to help it achieve its goals.”
The deal is the latest in a series of investments since the Mitsubishi Corporation acquired a £200 million 20 per cent stake in Ovo in February.
The company revealed recently it had exceeded £1 billion in revenue but saw gross profit fall by £52 million in 2018.
Ovo rocked the energy retail market last month with the announcement that it had agreed to purchase the retail arm of big six supplier SSE for £500 million.