Good Energy Group PLC (AIM:GOOA) is to sell its renewable energy generation business as it shifts strategy to focus on power infrastructure for electric vehicles in the UK.
It hired KPMG as an advisor for the sales process, which is slated to be completed in the first quarter of 2022.
The portfolio has a book value of £56.8mln after Good Energy’s April restructuring.
Good Energy said it held £9mln of cash at its half year end, and had some £39.1mln of debt secured against the generation portfolio.
Sale proceeds are earmarked to "accelerate and support strategic growth opportunities", including interests in the EV support space and decentralised power generation.
As part of its plan, the London-listed company will increase its investment in Zap-Map, an electric vehicle mapping platform which can direct users to public charging points – it covers some 95% of the UK charging network and presently has 290,000 registered users.
Zip-Zap is planning a £7mln funding round which Good Energy will participate in.
Alongside this consumer-facing services business, the company also plans to scale up its business in decentralised power, supporting customers that sell power back into the UK grid through the ‘feed-in’ tariff for small-scale renewable energy installations.
It presently has some 175,000 small-scale feed-in tariff generation customers, and through a new platform the company aims to enable improved terms for solar power customers. It hopes this platform will enable the ability for customers to pay actual as opposed to deemed rates, as well as deliver new services.
Good Energy said it is aims to capitalise on the growing market in decentralised, digitised clean energy and transport services, and is accelerating its transition from a renewable utility to an energy services provider.
Whilst the market exits of some of the energy providers have had short term impacts on the industry, Good Energy said it has been able to be flexible to the demands of the market as it is exempt from the price cap.
“Whilst the retail energy market continues to experience some short-term challenges, we remain positive about the future,” said chief executive Nigel Pocklington.
“We will largely be a debt free company, with a strong balance sheet for growth."