22 December 2017
Good Energy Group PLC
("Good Energy" or the "Group")
Sale of two operational 5MW solar farms and supplementary development rights
Good Energy, the AIM-listed renewable energy company supplying 100% renewable electricity and green gas to homes and businesses across the UK, is pleased to make the following announcement.
Good Energy has completed the sale of its 5MW solar farm at Newton Downs Farm near Newton Ferrers in Devon to CORE Aries Limited in partnership with Yealm Community Energy Limited, a local English community energy company. CORE Aries is owned by Community Owned Renewable Energy LLP ("CORE"). CORE is funded by community and social impact focussed investors Big Society Capital Limited and PTC Renewable Energy Limited. The consideration is £5.83 million, payable in cash, giving an estimated profit before tax of circa £0.75 million.
In addition, the Board has agreed to terms for the sale of the existing 5MW solar park at Brynwhilach Farm, near Llangyfelach, north of Swansea to CORE Pisces Limited in partnership with Gower Power Co-op CIC, a local Welsh community energy company. CORE Pisces is owned by CORE Home Nations Limited, funded by Big Society Capital Limited. Subject to satisfaction of conditions, Good Energy expects the transaction to complete in the first half of 2018. The consideration will be £5.6 million, payable in cash, giving an estimated profit before tax of circa £0.75 million. The transaction includes a potential additional cash payment to Good Energy linked to the value of any development or sale of Brynwhilach Phase II, the amount of which is not yet quantifiable.
Good Energy understands that CORE Aries and Core Pisces will be working with Yealm Community Energy Limited and Gower Power respectively to lift lifetime community benefit payments from each of the sites to in excess of £1 million. It has also been agreed that both sites will be transitioned into full community ownership over a period of time after completion of the sales.
Good Energy will continue to be the PPA off taker for both of the sites.
Good Energy will use the sale proceeds for general corporate purposes, including to fund investment initiatives supporting strategic growth, efficiency and profitability as already outlined by the Group.
Juliet Davenport, CEO of Good Energy, commented:
"The sale of the Newton Downs Farm and Brynwhilach Farm sites is an important milestone for Good Energy as we shift our focus away from development and towards new growth opportunities. In keeping with our purpose, I am delighted that we have been able to sell both sites to community organisations who will be able to leverage the opportunity of local renewable power generation. We look forward to working with CORE in the future."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Good Energy Group PLC +44 (0) 1249 766 795
Juliet Davenport, Chief Executive Officer
Denise Cockrem, Chief Financial Officer
Investec Bank plc +44 (0) 207 597 4000
Smithfield +44 (0) 20 3047 2543
Notes to editors:
· Good Energy is a fast-growing green energy company, generating and selling 100% renewable electricity and supplying carbon-neutral green gas to households and businesses across the UK.
· An AIM-listed PLC, and founder member of the Social Stock Exchange, Good Energy was established in 1999 to empower households and business to address climate changes through their choice of energy supplier.
· Good Energy has been awarded 4 out of 5 stars by Which? for customer service in 2016 and 2017 and has been awarded a "Best Buy" by Ethical Consumer.
· As at 30 June 2017, Good Energy had over 71,150 renewable electricity customers and 42,750 carbon neutral gas customers. It also provides Feed-in Tariff administration services to over 137,900 sites, totalling over 251,800.
· Good Energy is the owner of Delabole Wind Farm, the UK's first commercial onshore wind farm and owns and operates Hampole Wind Farm, near Doncaster. Following the sale of Newton Downs Farm and Brynwhilach Farm, the Group will own and operate six solar farms.
· Good Energy has a net promoter score (NPS) of 45. NPS is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company's products or services to others. It's used as a proxy for gauging the customer's overall satisfaction with a company's product or service and the customer's loyalty to the brand.
· Good Energy has won a number of awards, including Renewable Energy Association Company of the Year Award 2016, Business Green Company of the Year 2015, and was named Social Impact Company of the Year at the 2014 and 2015 Small Cap awards.
About Newton Downs Solar Farm
· Good Energy secured planning approval in July 2016 for a 5MW solar farm at Newton Downs Farm near Newton Ferrers in Devon.
· Construction of the solar farm was completed in January 2017.
· The solar farm is expected to generate enough renewable electricity to power approximately 1,400 average homes.
About Brynwhilach Farm Solar Farm
· Good Energy secured planning approval in November 2014 for a 12.7MW solar farm at Brynwhilach Farm near Swansea in South Wales.
· Construction of the first 5MW phase of the development was completed in March 2017 with potential to develop Phase II of the site at a later date.
· The constructed solar farm is expected to generate enough renewable electricity to power approximately 1,350 homes, increasing to approximately 2,700 average homes following construction of Phase II.