Australian-owned electricity retailing upstart Energy Locals is set to change hands, after Quinbrook Infrastructure Partners announced it has agreed to sell the company to a consortium led by Palisade Impact.
Energy Locals launched in New South Wales in 2017 with a mission to “kill the traditional energy model from within,” obtaining a retail licence for the dual purposes of “not screwing customers” while also allowing disruptive business models and technology companies to access the market.
Led by founder and CEO Adrian Merrick, Energy Locals took on the big three gentailers by offering customers a membership service, for a monthly set fee, and the supply of electricity based on “wholesale” market prices.
The retailer has also specialised in unlocking access to energy-efficient infrastructure and advanced technologies for occupants of multi-dwelling properties, making sustainable energy solutions more affordable for residents and businesses.
Along the way it has partnered with Tesla for its home battery-based virtual power plant in South Australia, and with iO Energy, an SA-based energy tech start-up offering customers the opportunity to pay less for clean energy by becoming smarter consumers.
In 2022 Energy Locals partnered with RACV to launch the insurance company’s own retail electricity offer, Arcline, and in 2023 it was named as the green energy retailer of the year by comparison website Finder.
Under the ownership of Quinbrook, which invested in Energy Locals in 2018, the business has grown its customer base 11.8 times to more than 260,000 retail and business customers in NSW, Victoria, Queensland, South Australia, ACT and Tasmania.
David Scaysbrook, co-founder and managing partner of Quinbrook says the consortium led by Palisade Impact is the “natural steward” to take Energy Locals to its next phase.
“Quinbrook identified very early the key role community energy networks play in accelerating the energy transition through enabling new approaches to energy distribution and sustainability,” Scaysbrook said on Monday.
“From concept to this pivotal agreement we have worked closely with the management team to develop a unique business model that is well positioned to continue to grow and deliver a cleaner energy future for its customers.”
Brian Restall, managing director and regional leader for Australia at Quinbrook he is confident in Energy Locals’ ability to continue to thrive under the ownership of Palisade Impact.
“Their alignment with our vision for sustainable energy access reassures us that the business is in excellent hands,” he said on Monday.
“We are proud of the achievements made by the Energy Locals team to date. Their focus on energy transition has delivered real benefits to local communities and residents, as well as to the leading brands that the company supports in their own energy transition objectives.”
Palisade Impact was founded in 2021 by former by ex-Macquarie executives Steve Gross and Jeremy Wernertource and is backed by infrastructure management heavyweight Palisade Investment Partners.
Gross, who is CEO of Palisade Impact, says Energy Locals has “all the characteristics” the fund looks for in a business, including environmental impact, a strong management team and robust infrastructure characteristics.
“The quality of Energy Locals is testament to the capability and passion of the staff and Quinbrook’s vision and active management,” Gross said on Monday.
“We look forward to working with the Energy Locals’ team and clients in continuing to grow the business and ensuring more Australians can access more affordable green energy,”
The transaction is expected to reach financial close by the end of 2024.
