Shell Energy Australia

Shell Energy Australia is Shell's Australian electricity and gas business serving commercial and industrial energy users. Its activities include electricity retailing, gas retailing, wholesale and generation-related operations, environmental products, and services intended to help businesses improve energy productivity and manage emissions. The business operates within Australia's deregulated and interconnected energy markets, with electricity retailing focused on large commercial and industrial customers across most Australian jurisdictions and gas retailing focused on commercial and industrial users in New South Wales and Victoria. The business developed from ERM Power, an Australian energy company founded by Trevor St Baker in 1980 as a specialist energy advisory firm. During the 1990s, ERM Power shifted toward power development as electricity-market deregulation created opportunities for independent generators and retailers. It entered electricity retailing in 2007, launched the ERM Business Energy brand in 2012, and expanded into the small and medium-sized enterprise market in 2013. ERM Power also pursued international expansion, entering the United States retail electricity market in 2015 through the acquisition of Texas-based Source Power & Gas. ERM Power listed on the Australian Securities Exchange in December 2010. Shell Australia agreed to acquire the company in 2019, and the business was delisted after the transaction. In February 2021, ERM Power was rebranded as Shell Energy. The change placed the established Australian energy retailer within Shell's broader global energy-transition strategy while retaining its local customer, generation and development activities. Shell Energy Australia's generation portfolio includes the Oakey Power Station in Queensland and the Neerabup Power Station in Western Australia. Both are gas-fired peaking facilities designed to provide electricity during periods of high demand or tight supply rather than operate as continuous baseload plants. The company also supplies electricity and gas to business customers and develops or contracts renewable and storage capacity. Its development portfolio has increasingly emphasized solar generation, batteries, flexible demand and wind power. Projects and agreements described in public reference material include the Gangarri Solar Development in Queensland, the Riverina Energy Storage System in New South Wales, a large battery project near the former Wallerawang Power Station, a separate battery partnership in Wellington, and the Kondinin renewable-energy development in Western Australia. The company has also participated in programs supported by the Australian Renewable Energy Agency to demonstrate demand response and flexible energy use at commercial and industrial sites. Shell Energy Australia forms part of Shell's stated ambition to become a net-zero emissions energy business by 2050, in step with society's progress toward the Paris Agreement goals. Its positioning therefore combines conventional firming and retail capabilities with renewable generation, storage, energy procurement, environmental products and customer-side efficiency services. The Australian business remains active, although the exact scope of its assets, projects and customer offerings may change as projects reach financial close, construction, commissioning or divestment.

Shell Energy Australia traces its corporate history to ERM Power, which Trevor St Baker founded in 1980 as an energy advisory firm in Australia. The company later moved beyond consulting and developed power projects during the 1990s, when deregulation and restructuring of the Australian electricity industry opened opportunities for independent generation and retail businesses. ERM Power entered electricity retailing in 2007 as the Australian market underwent further privatization, competition and vertical integration. It introduced the ERM Business Energy brand in 2012 and began targeting small and medium-sized enterprises in 2013. The company also sought growth outside Australia, acquiring Source Power & Gas in 2015 to enter the United States retail electricity market from a base in Texas. ERM Power became a publicly traded company on the Australian Securities Exchange on 10 December 2010. Shell Australia acquired the company in November 2019. The acquisition resulted in ERM Power's delisting and brought its Australian electricity, gas, generation and customer activities into Shell's portfolio. The business was rebranded Shell Energy Australia in February 2021. The Australian business has maintained a strong commercial and industrial orientation. It retails electricity to large business customers across Australia except the Northern Territory, and supplies gas to commercial and industrial users in New South Wales and Victoria. It also operates gas-fired peaking generation: Oakey Power Station in Queensland and Neerabup Power Station in Western Australia. These assets support supply reliability and market flexibility while Shell Energy has expanded its involvement in renewable energy, batteries and demand response. Renewable and storage activity has included the 120 MW Gangarri Solar Development in inland Queensland, a proposed project using approximately 330,000 photovoltaic panels. Shell Energy and Edify Energy were awarded a New South Wales Government contract in 2021 connected with the Riverina Energy Storage System, combining a retail arrangement with battery storage alongside the Darlington Point Solar Farm. In 2022, Shell Energy announced or entered several further development initiatives: a partnership with AMPYR Australia for a 500 MW/1,000 MWh battery at Wellington; a 50/50 partnership with Foresight Group to acquire Kondinin Energy in Western Australia; and an ARENA-supported flexible-demand program involving at least 40 commercial and industrial sites. In 2023, it acquired development rights for another 500 MW/1,000 MWh battery near Lithgow at the former Wallerawang Power Station. Shell Energy's strategic direction reflects Shell's stated objective of reaching net-zero emissions by 2050, subject to progress by society toward the Paris Agreement's goals. In Australia, this has involved combining existing gas-fired peaking and retail capabilities with renewable generation, grid-scale storage, energy procurement, environmental products and customer energy-efficiency services. The business also acquired residential retailer Powershop Australia in February 2022, broadening its customer exposure beyond its historic business-energy base.

• 2022

  Powershop Australia acquired

  [1]Shell Energy Australiaen.wikipedia.org

  Shell Energy expanded into residential retailing through the acquisition of Powershop Australia.

• 2021

  Rebranded as Shell Energy Australia

  [1]Shell Energy Australiaen.wikipedia.org

  The ERM Power business adopted the Shell Energy name in Australia.

• 2019

  Acquired by Shell Australia

  [1]Shell Energy Australiaen.wikipedia.org

  Shell Australia acquired ERM Power, after which the company was removed from the ASX.

• 2015

  United States retail expansion

  [1]Shell Energy Australiaen.wikipedia.org

  ERM Power entered the United States retail electricity market by acquiring Source Power & Gas in Texas.

• 2012

  ERM Business Energy launched

  [1]Shell Energy Australiaen.wikipedia.org

  ERM Power introduced the ERM Business Energy brand for its business-energy activities.

• 2010

  ASX listing

  [1]Shell Energy Australiaen.wikipedia.org

  ERM Power began trading on the Australian Securities Exchange on 10 December 2010.

• 2007

  Entry into electricity retailing

  [1]Shell Energy Australiaen.wikipedia.org

  ERM Power diversified into electricity retailing as competition, privatization and vertical integration expanded in Australia's energy industry.

• 1990

  Shift toward power development

  [1]Shell Energy Australiaen.wikipedia.org

  During the 1990s, ERM Power developed into a power-development company in response to electricity-market deregulation.

• 1980

  ERM Power founded

  [1]Shell Energy Australiaen.wikipedia.org

  Trevor St Baker founded the predecessor business as a specialist Australian energy advisory firm.

An Australian business-energy provider combining electricity and gas retailing with generation, renewable development, storage, environmental products and energy-productivity services.

• Energy retailing · 2007

  Commercial and industrial electricity

  Shell Energy supplies electricity to large commercial and industrial customers across Australian electricity markets, excluding the Northern Territory. The offering covers business energy procurement and retail supply, supported by the company's access to generation, wholesale-market expertise and developing storage portfolio.

• Energy retailing

  Commercial and industrial gas

  The business supplies gas to commercial and industrial customers in New South Wales and Victoria. Gas retailing complements its electricity business and supports customers that use gas as an industrial fuel or as part of broader energy portfolios.

• Environmental services

  Environmental products

  Shell Energy offers environmental products as part of its business-energy proposition. These products are intended to help commercial and industrial customers address electricity-related emissions and broader sustainability objectives, although the precise product mix can change over time.

• Energy management

  Energy productivity services

  Energy productivity services help business customers understand, manage and reduce energy consumption. The category includes customer-side efficiency and demand-management capabilities, including flexible-load initiatives supported through Australian renewable-energy programs.

• Energy infrastructure · 2021

  Renewable generation and battery storage

  Shell Energy develops, contracts or partners in renewable and storage projects, including solar, wind and grid-scale batteries. These assets are intended to complement retail supply and gas-fired peaking generation while increasing access to firmed and lower-emissions electricity.

• 2022Commercialising Smart Energy Hubs

  Queensland · New South Wales · Victoria

  Shell Energy participated in the ARENA-supported Commercialising Smart Energy Hubs project, using load control at commercial and industrial sites to demonstrate flexible demand.

  Outcome. The program was designed to demonstrate approximately 21.5 MW of flexible demand capacity across at least 40 customer sites.

  Source
• Shell net-zero transition

  Australia

  Shell Energy Australia's renewable, storage, environmental-productivity and demand-response activities support Shell's stated ambition to become a net-zero emissions energy business by 2050.

  Source

• 2022

  Acquire Powershop AustraliaM&A

  Background

  Shell Energy expanded its Australian retail footprint beyond its established commercial and industrial customer base.

  Action taken

  Shell Energy acquired residential energy retailer Powershop Australia.

  Aftermath

  The transaction added a residential-retail platform to Shell's Australian energy portfolio.

  Source

• 2022

  Expand into flexible demand and storageStrategy

  Background

  As variable renewable generation expanded in Australia's electricity system, Shell Energy pursued demand response and large-scale batteries as complements to retailing and peaking generation.

  Action taken

  The company accepted ARENA support for load control across commercial and industrial sites and advanced multiple battery projects and partnerships.

  Aftermath

  These initiatives broadened Shell Energy's role from energy retailer and generator toward an integrated provider of firming, storage and customer flexibility.

  Source

• 2021

  Rebrand ERM Power as Shell EnergyStrategy

  Background

  Following Shell's acquisition of ERM Power, the company aligned its Australian operating identity with Shell's global energy brand.

  Action taken

  ERM Power was rebranded Shell Energy Australia in February 2021.

  Aftermath

  The rebrand presented electricity, gas, environmental products and energy-productivity services under the Shell Energy name.

  Source

• 2019

  Acquire ERM PowerM&A

  Background

  Shell Australia sought to expand its Australian electricity and gas retailing, generation and energy-services presence through the purchase of ERM Power.

  Action taken

  Shell Australia acquired ERM Power, and the acquired company was subsequently delisted from the ASX.

  Aftermath

  The business became part of Shell's Australian energy operations and was later rebranded Shell Energy Australia.

  Source

1. 1Shell Energy Australiaen.wikipedia.org