Shell completes acquisition of energy retailer, Powershop Australia

• • The transaction has taken place through the 100% acquisition of Meridian Energy Australia Group (“MEA”), the parent company of Powershop, by a consortium of Shell and Infrastructure Capital Group (ICG), an Australian infrastructure investor and manager.
  • Under the terms of the deal, Shell has acquired Powershop and ICG has acquired MEA’s portfolio of renewable generation assets and development projects. Shell Energy also acquired Powershop’s existing wind power purchase agreements (PPAs) as part of the transaction and has agreed offtake arrangements with ICG associated with MEA’s hydro and wind assets, totaling 300 MW of capacity.
  • Powershop Australia is an electricity and gas retailer serving more than 185,000 customers in the residential and small business markets. It offers electricity in Victoria, New South Wales, South Australia and South-East Queensland, as well as gas in Victoria. It is Climate Active certified, an Australian Government certification awarded to businesses and organisations that have reached a state of achieving net-zero emissions.
  • The acquisition of Powershop is in line with Shell’s Powering Progress strategy and 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 dedicated supplier of electricity to commercial and industrial customers, comprising wholesale trading operations and energy solutions, supported by solar and gas-peaking generation assets. Gas-peaking assets are power plants that operate during periods of high-level demand for electricity or shortfalls of electricity supply.
  • Shell is helping to build a low-carbon energy system in Australia through a diversified and integrated portfolio that delivers a broad range of decarbonisation solutions and services to business and residential customers.
  • Today, Shell’s low-carbon energy business in Australia includes commercial and industrial retailer, Shell Energy (formerly ERM Power); carbon farming specialist, Select Carbon; construction of the 120MW Gangarri solar development in Queensland and home battery energy storage systems provider, sonnen Australia.
  • Shell aims to sell around 560 terawatt hours a year globally by 2030 as part of its Integrated Power business, twice as much electricity as it sells today, and expects to serve more than 15 million retail and business customers worldwide as a leading provider of clean power-as-a-service.
  • Shell has not disclosed financial details of its acquisition of Powershop.

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