Shell acquires virtual power plant operator Next Kraftwerke
25 February, 2021
Next Kraftwerke is a virtual power plant (VPP) operator,remotely connecting and managing over 10,000 decentralised energy units across eight countries in mainland Europe: Germany, Belgium, Austria, France, Poland, the Netherlands, Switzerland and Italy.
Shell extends its European virtual power plant footprint with the acquisition of Next Kraftwerke
Shell Overseas Investments BV (Shell) has agreed to acquire 100% of virtual power plant (VPP) operator Next Kraftwerke from its consortium of shareholders. The deal is expected to complete during the second quarter of 2021, subject to regulatory approval.
Next Kraftwerke is an important player amongst VPP operators, remotely connecting and managing over 10,000 decentralised energy units across eight countries in mainland Europe: Germany, Belgium, Austria, France, Poland, the Netherlands, Switzerland and Italy. These units – which include photovoltaics, bioenergy and hydropower – produce electricity that is traded on the wholesale electricity markets on behalf of Next Kraftwerke’s customers.
This acquisition is in line with Shell’s customer-first, digitally-enabled integrated power strategy that will help the company in its ambition to become a leading provider of clean Power-as-a-Service. Shell aims to sell around 560-terawatt hours of electricity a year by 2030, twice as much as it sells today.
“The acquisition of Next Kraftwerke will accelerate Shell’s strategy to grow by adding smaller renewable assets to our portfolio. The complementary skills of the two companies will also support utility scale large renewable projects by providing a wide range of hedging and risk management options,” David Wells, VP Shell Energy Europe, said.
Hendrik Sämisch, founder and CEO of Next Kraftwerke, said: “Bringing Shell and Next Kraftwerke together will help to accelerate the move towards a decarbonised energy system, through the wider deal opportunities and trading synergies that will come from the expected rapid increase in demand for renewable energy trading contracts.”
Fabian Ziegler, Chairman of Deutsche Shell Holding GmbH, said: “Shell in Germany is transforming its business as the energy transition progresses. We support Germany’s ambition to become a net zero emissions country. The power market is key to achieving this and we are leading the way through our supply of renewable power to industry partners and private households, our acquisition of high-tech battery storage system sonnen, and the continued growth of our electric vehicle charging network.”