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
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