Clean energy utility Good Energy has identified battery storage and electric vehicles as two of three new business opportunities to explore after saying it was “streamlining” its operating model.
Towards the end of last year Good warned that it had experienced a “more challenging” winter period than expected and particularly lamented “exceptional volatility” in the short-term power market.
While this morning’s unaudited results disclosure confirmed that the company’s performance was in line with market expectations, Good said it was to “streamline its operating model” in order to pursue further improvements in costs “above and beyond that which comes from economies of scale from additional revenue growth”.
Good also confirmed that the change would result in “some changes” to its senior leadership change, however the only departure stated in the results is that of managing director of supply David Brooks, who is to leave the firm on 7 April.
“There are opportunities to deliver further efficiencies in both its costs to serve and in our overhead costs, by simplifying our processes and structures and this will be a strong focus for 2017. The Company has recently completed a strategic review of its operating model and the senior leadership structure required to support it,” Juliet Davenport, chief executive at Good Energy, said.
The company hopes that these changes will aid the business as it continues to switch focus. Good had previously revealed that its generation business would be significantly different as subsidy support frameworks closed, and today’s results disclosure revealed that the company would now be prioritising “security of renewable energy supply” from third parties as opposed to new development.
Meanwhile Good has placed new strategic importance on three areas which it said would be used to “build momentum” and “generate future business opportunities”.
Battery storage, electric vehicle networks and green business consultancy work will be areas which Good Energy will explore, particularly in the development and delivery of solutions to its growing business customer unit.
Good will also look to develop storage facilities on generation assets it is partnered with.
Good Energy's revenues and operating profit both grew by 41% to £90.4 million and £6 million respectively over the course of the period.