Change in ownership for Melbourne energy retailer Flow Power

Melbourne-based energy retailer Flow Power has announced a change of ownership, with Canadian pension fund OPTrust acquiring a 51% stake in the company.

The news was revealed at Flow Power’s White Night event, held last week in partnership with Visit Victoria.

Operationally the company will continue to function as usual, with the leadership team and existing Australian shareholders remaining the same. Stan Kolenc, OPTrust’s Sydney-based managing director, will join the Flow Power board.

The investment will also see Flow Power expand its Melbourne office, as well as look at establishing a presence in Sydney, Adelaide and Brisbane. This will create approximately 50 jobs across Australia over the next 12 months and allow for the expansion of Flow Power’s existing project scope. The investment also includes Flow Power’s sister company, Utilacor.

Flow Power takes an innovative approach to Australia’s changing energy landscape by giving its customers the ability to control load in response to price fluctuations. Its locally developed technology, the kWatch Intelligent Controller, is said to make complex decisions, interact with control systems and help save businesses money.

Flow Power recently became the first electricity retailer to bring corporate renewable power purchase agreements to Australia. It has also participated in a number of programs to increase cost-effective demand response capacity.

OPTrust has previously spoken of its intention to invest heavily in renewables in Australia, so the acquisition of Flow Power demonstrates its view of the company as a significant player in the Australian energy market.

“We were drawn to Flow Power as a first mover in an industry that is well suited to a company as innovative as Flow Power,” said Kolenc. “Flow Power’s IP and technology hold real promise, and we are excited about the opportunity to grow the company.

“Australia is a key market for us, and has seen significant growth in recent years. Carefully selecting the right investments is our key priority, as we are looking to back more ethical, innovative and profitable companies like Flow Power.”

Matthew van der Linden, managing director and founder of Flow Power, said selling the business was part of his long-term growth strategy, and will allow the firm to turn into a billion-dollar company in the coming years.

“We are delighted to have the backing of such a respected player as OPTrust,” he said. “We look forward to the opportunities it will enable Flow Power to provide for customers as we continue our momentum in transforming the Australia power market.”

OPTrust has a strong vision for renewable energy in Australia, having previously co-financed the Ararat Wind Farm. The company has already invested over $500 million in Australia across private equity and infrastructure assets and has been growing its Australian office and team. It will continue the search for private market opportunities.

Image credit: ©stock.adobe.com/au/Sergey Nivens