Shell has announced it will acquire online energy retailer Powershop Australia, a subsidiary of Meridian Energy Australia Group (MEA).
The transaction will take place through the 100 per cent acquisition of MEA by a consortium of Shell and Infrastructure Capital Group (ICG), an Australian infrastructure investor and manager.
Under the terms of the deal, Shell will acquire Powershop and ICG will acquire MEA’s portfolio of renewable generation assets and development projects.
Shell Australia Chairman, Tony Nunan, said, “This acquisition will see Shell continuing to serve the energy needs of our customers – this time in their homes.”
Shell said the acquisition of Powershop is in line with its ambition to create an integrated power business.
Powershop will form Shell’s residential power platform in Australia, extending Shell’s existing position as Australia’s largest retailer of electricity to commercial and industrial customers.
Under the arrangement with ICG, Shell will also acquire wind power purchase agreements (PPAs) and has agreed on offtake arrangements with ICG associated with MEA’s hydro and wind assets.
Shell’s Executive Vice President of Renewables and Energy Solutions, Elisabeth Brinton, said, “Our aim is to become a leading provider of clean power-as-a-service and this acquisition broadens our customer portfolio in Australia to include households.
“Shell’s presence across the entirety of our changing energy system means we are well-placed to manage complexity for customers so that we deliver simple, cleaner energy solutions.
Mr Nunan said, “This acquisition is another example of how we are continuing to grow our footprint in Australia to meet customers’ evolving needs through the energy transition.
“Powershop today offers innovative energy packages, and customers will benefit in the future from access to Shell’s broader suite of energy solutions linked to e-mobility and battery storage.”
The acquisition is subject to regulatory approvals. It is expected to be completed in the first half of 2022.
Environment Victoria has announced the termination of its partnership with Powershop following news of the acquisition.
Environment Victoria CEO, Jono La Nauze, said that Powershop was considered the greenest electricity retailer in Australia, with its parent company, Meridian Energy, having zero investments in fossil fuel resources.
“Powershop’s growth successfully challenged the business model of Australia’s biggest polluters, and over six years we helped switch hundreds of our supporters to what was then a more ethical energy provider,” Mr La Nauze said.
“But the sudden and extremely disappointing announcement that Shell will be the new owners of Powershop changes everything. They will now be owned by one of the world’s biggest climate wreckers.”
Mr La Nauze said Environment Victoria had concerns about Shell’s plans for fossil gas business expansions, stating that opposing values in terms of climate change and environmental protection were the predominant reason for the partnership termination.