Shell to acquire energy retailer Powershop Australia
01:19, 22 November 2021
Shell Energy Operations, a wholly-owned subsidiary of Shell, announced on Monday that it will acquire online energy retailer Powershop Australia for an undisclosed amount.
Powershop Australia serves 185,000 residential and small business customers. It offers electricity in Victoria, New South Wales, South Australia and South-East Queensland, as well as gas in Victoria.
Powershop will form Shell’s residential power platform in Australia, extending Shell’s existing position as Australia’s largest dedicated retailer of electricity to commercial and industrial customers, Shell's said in the statement.
Renewable energy assets
“Shell has been in Australia for more than 120 years and has a proud history of providing Australians with the energy they need to power their lives. This acquisition will see Shell continuing to serve the energy needs of our customers – this time in their homes,” said Shell Australia chairman Tony Nunan.
Under the arrangement with ICG, Shell Energy will also acquire wind power purchase agreements (PPAs) and has agreed offtake arrangements with ICG associated with Meridian Energy Australia’s (MEA) hydro and wind assets.
MEA is Powershop’s parent company. According to Powershop’s website, MEA has four wind farms and four hydro projects.
Integrated power business
Powerhouse has received Climate Active certification from the Australian government. The certification is awarded to businesses and organisations that have credibly reached a state of achieving net zero emissions.
Powerhouse acquisition is line with Shell’s strategy to create an integrated power business. Shell aims to sell around 560 terawatt hours a year globally by 2030 as part of its integrated power business or twice as much electricity as its businesses sell today. It expects to serve more than 15 million retail and business customers worldwide.