Simply Energy announce joint venture with Contact Energy
Provider of energy solutions to industrial and commercial companies and white label retail services, Simply Energy, is pleased to confirm that it has entered into a formal, joint venture partnership with Contact Energy effective 11 June.
Contact Energy will acquire 49.9 percent of Simply Energy under terms of the joint venture partnership agreement.
Simply Energy retains independence as a standalone business, however it will benefit from renewable generation, wholesale trading, prudential and risk solutions by way of partnering with Contact Energy.
Therefore Simply Energy’s current and future white label retail clients will welcome enhanced support of wholesale tariff and prudential security solutions.
Managing Director of parent company Simply Group, Murray Dyer, says the joint venture signals necessary growth to keep pace with rapidly evolving energy needs within the market, moving away from coal and non-renewable sources to solar, battery, hydro and geothermal power.
“Simply Energy will benefit from the new capital that Contact Energy is investing into Simply Energy to further untap our growth potential, therefore we’ll be enhancing our service offering and capability in terms of personnel in order to pursue a number of growth opportunities.
“We were the first in market to offer spot supply to mainstream commercial customers, first to focus on embedded generation solutions and two-way energy flows, and first to develop micro grids and energy management solutions. This partnership is a means to continue that level of innovation and growth – at scale,” he says.
Simply Energy embraces energy decarbonisation solutions which will be accelerated by the joint venture partnership.
James Kilty, Contact Energy’s Chief Generation and Development Officer, says: “We look forward to working with Simply Energy, we value their track record and capability to develop and deliver innovative energy solutions. We see this as a real partnership, as we will be delivering wholesale price risk management tools and balance sheet support for prudential solutions back into Simply Energy and its valued clients. We want to maintain Simply Energy’s independence and innovation, and provide support to help accelerate their growth potential.”
It is expected that a number of emerging technologies – unique to the sector – will benefit from Simply Energy’s agile approach when combined with Contact Energy’s network reach and strength of balance sheet, this is a very exciting development for New Zealand energy consumers, and indeed for the industry,” says Dyer.