The transaction will take place through the 100% acquisition of Meridian Energy Australia Group, the parent company of Powershop, by a consortium of Shell and Infrastructure Capital Group (ICG), an Australian infrastructure investor and manager. Under the terms of the deal, Shell will acquire Powershop and ICG will acquire MEA’s portfolio of renewable generation assets and development projects.

Shell Australia chairman Tony Nunan said: “Shell has been in Australia for more than 120 years and has a proud history of providing Australians with the energy they need to power their lives. This acquisition will see Shell continuing to serve the energy needs of our customers – this time in their homes.”

The acquisition of Powershop is in line with Shell’s Powering Progress strategy and ambition to create an integrated power business. Powershop will form Shell’s residential power platform in Australia, extending Shell’s existing position as Australia’s largest dedicated retailer of electricity to commercial and industrial customers. Under the arrangement with ICG, Shell Energy will also acquire wind power purchase agreements (PPAs) and has agreed offtake arrangements with ICG associated with MEA’s hydro and wind assets.

“Our aim is to become a leading provider of clean power-as-a-service and this acquisition broadens our customer portfolio in Australia to include households,” said Shell’s Executive Vice President of Renewables and Energy Solutions Elisabeth Brinton. “Shell’s presence across the entirety of our changing energy system means we are well-placed to manage complexity for customers so that we deliver simple, cleaner energy solutions.”

“This acquisition is another example of how we are continuing to grow our footprint in Australia to meet customers’ evolving needs through the energy transition. Powershop today offers innovative energy packages, and customers will benefit in the future from access to Shell’s broader suite of energy solutions linked to e-mobility and battery storage,” said Shell Australia chairman Tony Nunan.

The acquisition is subject to regulatory approvals. It is expected to be completed in the first half of 2022.