A Shell consortium has signed an agreement to acquire Australian electricity business of Meridian in a deal worth A$729m ($529.4m).

The consortium consists of Shell Energy Operations, a wholly owned subsidiary of Shell (Shell) and Australian infrastructure investor and manager Infrastructure Capital Group (ICG).

The deal includes the 100% acquisition of Meridian Energy Australia Group (MEA), the parent company of Powershop Australia, an online energy retailer that serves more than 185,000 customers.

Under the terms of the agreement, Shell will acquire Powershop, while ICG will buy Meridian’s renewable generation assets and development projects.

Part of Shell’s Powering Progress strategy, the acquisition of Powershop is expected to enable the company to create its residential power platform in Australia.

Shell’s renewables and energy solutions executive vice president Elisabeth Brinton said: “Our aim is to become a leading provider of clean power-as-a-service and this acquisition broadens our customer portfolio in Australia to include households.

“Shell’s presence across the entirety of our changing energy system means we are well-placed to manage complexity for customers so that we deliver simple, cleaner energy solutions.”

As part of the deal, ICG will become the owner of Meridian’s infrastructure assets that include Mt Mercer and Mt Millar wind farms, Hume, Burrinjuck and Keepit hydro power stations and development assets.

Located in Victoria, Australia, Mt Mercer wind farm is a 131MW wind project that started commercial operations in September 2014.

Featuring 35 turbines to generate up to 70MW capacity, Mt Millar wind farm is located in South Australia.

Under an arrangement with ICG, Shell Energy has agreed offtake arrangements with ICG related to the hydro and wind assets included in the acquisition.

The transaction is expected to be completed in the first quarter of 2022.

It is subject to limited conditions precedent including Shell receiving foreign investment approval from the Australian government.

Shell Energy currently operates 662MW of gas-fired peaking capacity with power stations in Western Australia and Queensland. The company is also developing the 120MW Gangarri solar energy project in Queensland.