Good Energy sells solar asset to support pre-ROC deadline development

Good Energy has sold the 5MW Oaklands solar farm and intends to use the proceeds to support the development of further solar sites prior to March’s Renewables Obligation deadline.

Good confirmed this morning that energy company Eneco UK had won a competitive tender process for the site with a bid of £5.78 million, resulting in net profit of between £340,000 and £390,000 for the renewable energy supplier.

The company confirmed that the proceeds will fund further solar development prior to the ROC deadline with Good hoping to complete a number of sites in the coming months.

Good Energy will also retain an option to purchase all power generated by the site.

“Good Energy developed, constructed and has been operating the Oaklands site since January 2016, showcasing the capabilities of our generation team.

“The sale to Eneco gives us optionality over the power from Oaklands and continues our strategy of selling sites and reinvesting to develop renewable assets, helping the UK to become more energy self-sufficient.

“This is our first project with Eneco and we look forward to working with them as we manage this great site,” Juliet Davenport, CEO at Good Energy, said.

The supplier also warned that “exceptional volatility” in the power trading market would impact upon its earnings this year.

Good said the short term power trading market had proven to be more volatile than expected between late October and late November and, as a result, the company was now only expected to meet the lower end of market trading expectations for that period.

In addition the company caveated that it would only do so if the “more favourable trading conditions” experienced so far in December continued until the end of the month.

“While the short term trading conditions have been tough from late October through to late November we have seen a return to more normal trading conditions in December,” Davenport added.