Zen Energy, backed by the family of transition expert Ross Garnaut, has slumped to a $35.5 million loss after volatile early-winter electricity prices and nearly $100 million dusted on hedging contracts hit the renewables and storage company’s bottom line.

The result – an $86 million shortfall on its budgeted profit – comes five months after the company raised $54 million in debt, the proceeds of which it planned to use to develop its Templers battery project north of Adelaide and other projects in South Australia and south-east Queensland.