Dive Brief:

• Shell Energy North America (SENA) on June 29 announced it had signed a purchase agreement to acquire MP2 Energy LLC and expects to close the deal in the third quarter, pending regulatory approvals.
• MP2 will bring a diverse group of resources to Shell's electric portfolio, including renewable energy and demand-side management. The company is a full service power company, serving approximately 1,400 MW to customers in Texas, Illinois, Pennsylvania and Ohio.
• Greentech Media reports the acquisition shows SENA wants to grow its market share of commercial and industrial customers, and will focus on Texas and the eastern United States.

Dive Insight:

MP2's diverse resource mix make it an interesting investment, but the significance of Shell's acquisition may signal a trend of Big Oil and gas companies eyeing a foothold in the power sector. 

GTM points to a recent report from Wood Mackenzie, which posits renewable energy has grown to the point that major fossil fuel producers are wanting in. 

"Wind and solar are poised to radically reshape energy markets and the growth opportunity in renewables cannot be ignored," according to the report's summary. "Though the timing of the energy transition is highly uncertain, oil and gas companies need to build expertise, balance and optionality to hedge against any future erosion of the upstream value proposition."

In a statement describing the deal, Shell said the acquisition of MP2 expands the company's "capabilities in Texas and throughout the eastern U.S., as well as access to MP2’s top tier network of aggregators, brokers, and consultants."

SENA Vice President Glenn Wright said MP2 "has established itself as a significant player in the large end-user electricity market, and achieved its position by combining optimally designed energy solutions and exceptional customer service.”

Last summer, MP2 partnered with SolarCity to offer retail rates for excess generation in Texas markets, though the state does not offer a statewide net metering policy. MP2 was able to offer the product by operating both as an energy retailer and qualified scheduling entity that can trade in the state's wholesale energy markets.