Good Energy to exit 47.5-MW generation portfolio in EV shift

The Carloggas solar farm in Cornwall. Source: Good Energy.

November 25 (Renewables Now) - Good Energy Group Plc (LON:GOOD) on Wednesday said it is putting its entire 47.5-MW portfolio of renewable electricity generation assets on the block, as it seeks to speed up a transition from a renewable utility to a decentralised clean energy and electric mobility services provider.

The company plans to use the proceeds to accelerate and support investment in previously-identified strategic growth opportunities, using the cash to strengthen its balance sheet in the short term.

The portfolio to be divested had a net book value of GBP 56.8 million (USD 75.8m/EUR 67.7m) as at end-June. Good Energy currently owns the 9.2-MW Delabole and 8.2-MW Hampole onshore wind farms. It also has six solar farms with a total installed capacity of 30.1 MW. In April, the company refinanced and restructured the portfolio as part of efforts to simplify its balance sheet.

KPMG has been tapped to manage the sale process. Good Energy expects to complete the divestment in the first quarter of 2022.

The company's exit from its renewable generation portfolio is scheduled to be wrapped up around the same time as a current GBP-7-million funding round for its subsidiary Zap-Map, an electric vehicle (EV) mapping platform. Good Energy said it will take part in the cash call, which will support the platform's further development in the UK and expansion into international markets.

"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," CEO Nigel Pocklington said.

The company sees a means to achieve full-year targets, despite the short-term financial pressure resulting from the volatile energy market and the collapse of 22 UK power suppliers since September.

Good Energy sees strong investor support for its new strategic direction demonstrated through its success in fending off a recent hostile buyout attempt by shareholder Ecotricity.

(GBP 1 = USD 1.335/EUR 1.191)

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