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Good Energy Group
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environmental conservation | LISTED
Good Energy Group plc
Business Overview
Established: 1999
business overview
Business Area:
Good Energy Group (“Good Energy”) is a 100%
renewable electricity supplier. Good Energy
supplies over 55,000 electricity customers,
28,000 gas customers and supports over
93,500 homes, business and communities
generating their own energy. Good Energy is
the owner of Delabole Wind Farm, the UK’s
first commercial wind farm, and owns and
operates Hampole Wind Farm, near Doncaster.
The company also owns and operates six solar
farms. During H1 2015, around 25% of the
electricity supplied by Good Energy came from
its own assets.
Renewable Energy: Generation and
Distribution of Electricity
Business HIGHLIGHTS
Location: Chippenham, Wiltshire, UK
Listing: AIM
Number of employees: 201 - 500
Issued share capital: 14,667,896
(Ordinary Shares of 5p each)
company website:
www.goodenergygroup.com
Good Energy saw in the last five years
an overall growth of 97% of electricity
customers and 654% of gas customers.
Good Energy demonstrates high levels
of customer retention with a consistently
low level of customer churn.
Good Energy has come first or second in the
last five Which? energy company customer
satisfaction surveys.
In 2014 it commissioned a second wind farm,
this time in Hampole, Yorkshire. The 8.2MW
site produces enough electricity for around
4,750 homes.
It invested £11.8 million in repowering its
Delabole Wind Farm in Cornwall in 2010. The
wind farm now supplies enough electricity to
power approximately 6,200 homes.
The company now owns and operates six
solar farms across the South West. Carloggas
(8.3MW) and Creathorne Farm (1.8MW) are in
Cornwall. Crossroads (4.9MW) and Woolbridge
(5MW) are in Dorset. Rook Wood (4.9MW) and
Lower End (4.9MW) are in Wiltshire.
Started to diversify its generation sources by
investing in the new technologies such as the
Tidal Lagoon Power Swansea Bay project,
which received planning permission June
2015 and is anticipated to begin generating
electricity in 2021. Good Energy’s investment
gives them the option to purchase 10% of the
output from the project, currently forecast at
495GWh per annum.
What the management
team says...
“Good Energy was established with a clear
mission to tackle climate change and help
deliver energy security for the UK. This mission
remains as relevant today as it did when we
first opened for business, and we continue
to provide the blueprint for how energy
companies could and should look in the
21st century.”
John Maltby, Good Energy Chairman
Source: annual report 2014, chairman’s statement
“The recent climate talks in Paris were a
turning point in history – the switch to
renewable energy has a clear pathway now.
We have every confidence that Good Energy
will successfully help tackle climate change
and make the UK more energy self-sufficient,
for the benefit of consumers and shareholders
alike, for years to come. ”
Juliet Davenport, Good Energy Founder & CEO
Generation volume increased 5% to 42GWh
in last financial year.
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Good Energy Group plc
Social Impact
Social Mission
Good Energy’s mission is to keep the world
a habitable place by avoiding climate change
and help the UK to deliver a long-term energy
security by making the UK more energy
self-sufficient. Good Energy has a strong
ethical commitment to run its business for
all stakeholders, including its customers,
employees, capital providers, and, ultimately
our society inhabiting earth itself. This is
delivered through a sustainable, profitable
commercial business model.
To achieve the impact model above,
Good Energy delivers specific activities
in three main areas:
Demand: Grow its total customer and
generator base to fulfil its objective of using the
power of the market and consumer demand to
help tackle climate change
Supply: Good Energy’s total combined wind
and solar installed capacity at 30th June 2015
was 47.5MW. By investing in its own generation
portfolio, the company will also increase the
UK’s supply of renewable electricity
Innovation: Good Energy looks to lead
the transformation of the UK’s energy system
through decentralised and diversified electricity
generation. Examples of Good Energy’s
innovation include:
Decentralised energy. Good Energy is trialling
Piclo, an online peer-to-peer energy trading
marketplace, which gives consumers the
power to choose exactly where their electricity
is coming from, by ensuring that regulatory
requirements are meet and by supporting the
facilitation of billing.
Battery storage. Good Energy is in partnership
with Moixa Technology to pilot a home energy
storage system.
In January 2013, Good Energy became the
first company to launch a local electricity
tariff for communities living close to a wind
farm. Residents who live near to its Delabole
Wind Farm are offered a local electricity tariff
which will always be at least 20% cheaper than
the company’s standard regional tariff. This
approach has been replicated at Good Energy’s
Hampole Wind Farm in Yorkshire;
Feed-in Tariff. In 2004, Good Energy
introduced HomeGen, a precursor to the
Government’s Feed-in Tariff (FiT) scheme, to
help domestic consumers generate their own
renewable electricity.
Who benefits?
The Environment through reduction of
CO2 in the atmosphere by replacing fossil fuel
generation with renewable energy.
Local Communities whereby Good
Energy has put in place a comprehensive
community engagement scheme to minimise
the adverse community impacts from its
projects. Likewise the local economy benefits
from local energy generators.
Renewable Heat. In September 2008,
Good Energy introduced its HotROCS scheme
to support the UK’s nascent renewable
heat generation sector. The company also
campaigned for the introduction of a national
scheme, the Government’s domestic Renewable
Heat Incentive, which was launched in
April 2014;
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Impact Measurement
Good Energy’s latest Social Impact report was
published in September 2015. Previously Good
Energy published a Values Report on activities
related to the company’s ethical and social
impacts. The company is now in the process of
reviewing its CSR approach and practices and
will identify improvement areas with respect
to reporting matters. PricewaterhouseCoopers
has independently audited Good Energy’s zero
emissions electricity supply and their brand
promise that they always have and always will
supply 100% renewable electricity, derived only
from UK sources.
Accreditations, Standards
& Awards
Ethical Company Organisation’s league table:
1st place for energy suppliers
(for 12 consecutive years)
Accredited Living Wage Employer
WRI GHG Accounting and Reporting
Principles Scope 2
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environmental conservation | LISTED
Good Energy Group plc
Impact Assessment Matrix
EconomIC Impact
Local Economy
SOCIAL Impact
Measurement
Reported Data
Annual payout from local community
funds rising with inflation
per MW of solar £1,000
per MW of wind: £2,000
Percentage of power sourced from
medium-scale renewable generators
c. 70%
Average saving from local tariffs from
wind farm projects over 4MW
Delabole £108 p.a.
(20% acceptance rate)
Hampole £123 p.a.
(15% acceptance rate)
Energy Security
No. of independent small
and medium generators
>800
Education
No. of schools supported in
crowdfunding programme for installing
solar panels
16 new schools in most recent academic year
ENVIRONMENTAL Impact
Measurement
Reported Data
Energy Security
Domestic consumers generating their
own renewable electricity
To be Reported
Education
& Training
Support thought leadership related to
renewable energy
1 PhD Studentship supported
Financial Inclusion
Community ownership in developed
projects
To be Reported
Local Currency Adoption
Accepted Bristol £ payments
Healthy and sustainable living,
sustainable transport and waste
Staff Policies in place
Well-being
& Sustainability
GOVERNANCE
Measurement
Reported Data
Emissions
Annual CO2 emissions saved
86,400 tCO2e
Renewable Energy
Installed capacity
47.5MW (30 June 2015)
Energy Storage
Installed kWh of energy storage systems
To be Reported
Clean Technology
No. of electric vehicles and smart energy
controls
To be Reported
Conservation
No. of ecosystems and habitats restored
To be Reported
Compliance
Corporate
Governance
Measurement
Reported Data
Compliance with social mission
3 reporting methods in place & due diligence on
partners and customers
Procurement Policy, Biogeneration Policy
Renewable Development Charter
In Place
UK Corporate Governance Code
The board is familiar with the code
Non-Executive Representation
Non-Executive Chairman
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Good Energy Group plc
Commercial and Financial Summary
corporate Structure
Financial Information
The Group is financed through both equity
share capital and debt instruments. In 2014 net
debt equity ratio was 41% (2013: 13.3%)1.
Ticker: Good
Share price: £2.05 (close: 15/01/16)
Year on year Good Energy had net income fall
of 32.26 % from £2.67m to £1.81m despite a
42.59% increase in revenues from £40.41m
to £57.62m. The 2014 result included a pre
tax exceptional financing cost of £881k.
Excluding this, net income fell by 6%. In the
same financial year Good Energy generated
£640.00k in cash from operations while cash
used for investing totalled £19.44m, overall
cash reserves fell by £4.27m.
Market Cap: £30.67 (close: 15/01/16)
PRICE CHART2
Year end
3
Consensus
As of 8 December 2015, the consensus
forecast amongst 2 polled investment analysts
covering Good Energy Group plc advises
investors to purchase equity in the company.
This has been the consensus forecast since the
sentiment of investment analysts improved on
Oct 03, 2012. The previous consensus forecast
advised investors to hold their position4.
th
Financial Performance
Dec-2012
Dec-2013
Dec-2014
Group turnover (£m)
28.20
40.41
57.62
Profit before tax (£m)
1.38
3.26
1.29
Tangible Fixed Assets (£m)
11.01
20.11
44.73
Shareholder’s Funds (£m)
11.05
16.46
17.94
Cash Balances (£m)
9.54
17.98
13.71
Net Cash flows from operating
activities(£m)
5.57
0.34
0.64
PE (x)
14.25
Arden Partners Analyst Report 13 April 2015
LSE
3
LSE (Note: The market capitalisation of companies reflects the
London listed element only. These figures are approximate and are
updated monthly)
4
Financial Times Markets Data
5
Arden Partners Analyst Report 13 April 2015
1
2
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Good Energy Group plc
Case Studies
As part of its commitment to invest in the
community, Good Energy has also funded the
installation of small-scale solar PV systems at
three local primary schools and the village hall.
Delabole Wind Farm
Woolbridge Solar Farm
Delabole Wind Farm in North Cornwall was
the first commercial wind farm in the UK,
completed and commissioned in 1991 by the
Edwards family. Good Energy bought the wind
farm in 2002 and has owned and operated it
ever since. From 2009 - 2011, Good Energy
invested £11.8 million repowering the wind
farm, replacing 10 400kW turbines with four
machines and more than doubling the total
installed capacity of the site to 9.2MW.
The 5MW Woolbridge Solar Farm near Wool in
Dorset was the first solar farm to be developed,
built and operated by Good Energy.
For the lifetime of the wind farm, Good Energy
will contribute at least £9,200 per year (rising
with inflation) to provide an annual community
fund. The fund supports projects that benefit
those living in the surrounding area and is
managed by a committee of local people who
also decide how the money is spent.
Join the discussion
#socialimpact
#climate
#renewables
#sustainability
#solarenergy
Completed in June 2014, it generates enough
renewable electricity to power around
1,350 homes.
Like all the company’s sites, it has a bespoke
biodiversity plan, including tree planting,
wildlife-enhancing measures and the planting
of a new wildflower meadow. The site is also
designed to enable sheep to graze between
the panels.
For the lifetime of the project, Good Energy is
contributing at least £5,000 per year, rising
with inflation, to a community fund. This
fund is managed by a committee comprising
local people and used to support community
initiatives.
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Good Energy Group plc
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