Renewable energy utility Good Energy has made cuts to the size of its generation development team amidst policy upheaval in the UK.
The company confirmed in its 2015 results, published this morning, that government cuts to utility-scale renewables projects had forced its hand and that £575,000 of early-stage development costs would be written off due to the projects now being deemed unable to progress.
As a result, Good Energy has reduced the size of its development team and redeployed other staff into alternative roles within the company.
It will focus on its existing portfolio of renewable energy generation assets, particularly its pipeline of wind farms, while maintaining interest in future hydro plants. The company added that it “remains optimistic” about the available returns from operational assets.
Despite this, chief executive Juliet Davenport said in her report that Good Energy would look to fill any renewables supply gaps through secured power purchase agreements and continued energy trading via its fledgling Piclo platform, which it trialled towards the end of last year.
Interest in PPAs from energy suppliers has soared recently with asset holders looking to secure longer-term revenues and remove their vulnerability to the wholesale energy price.
Utilities supplying renewable-sourced power have also experienced considerable growth in interest. Davenport noted the increasing interest in renewable power from commercial businesses in today’s report, highlighting how she believed Good Energy was in an “excellent position” to cater for companies such as those who support The Climate Group’s RE100 programme.
In the twelve months to 31 December 2015, the company witnessed customer numbers soar 44% but profit before tax slumped to £128,000. It said the figure was in line with expectations due to the bulk of 2014 profit deriving from the £3.6 million proceeds of a solar farm sale.
Good posted a loss for the year after taxation of £195,000, but Davenport said the company had spent 2015 building on strong foundations.
“…I am confident Good Energy will be able to both continue to maximise the opportunities for growth and respond to changing energy policy throughout the coming year and beyond,” she added.