Octopus Energy to acquire Octopus Renewables
Octopus Energy, the UK energy supplier which has enjoyed exponential growth since its inception in 2015, is to acquire Octopus Renewables in a move which will make it one of Europe’s biggest renewable energy investors Both companies currently exist under the umbrella of the Octopus Group but from June of this year, Octopus Renewables European portfolio will be managed by Octopus Energy under its new arm Octopus Generation.
In the five years of its existence, Octopus Energy has acquired two million customers to make it the fifth largest UK energy supplier. It was recently valued at $2bn – according it double unicorn status – after sealing a deal with a Japanese utility firm. The company has demonstrated an innovative approach with an emphasis on using smart meters to reduce costs and creating bespoke tariffs.
One such scheme – the Fan Club tariff – saw Octopus Energy move into the energy generation market earlier this year by acquiring wind turbines in South Wales and Yorkshire which provide local customers with cheaper energy when wind speeds increase. The company has also extended its tentacles overseas and now has a presence in the USA, Australia, New Zealand, Germany and Japan with over 13 million accounts contracted globally.
Octopus Renewables entered the renewables market in 2010 as Octopus Energy Investments. They rebranded to Octopus Renewables in 2019 and have grown to become the largest investor of solar power in Europe to augment their substantial investments in offshore wind. The company’s portfolio of clean energy assets – valued at £3.4bn – generates a combined capacity of 2.8 gigawatts and they have branched out with investments in Finland, Sweden, France and Australia.
In March 2020, Nest – the UK’s largest workplace pension scheme managing pensions for more than 10 million employees – selected Octopus Renewables to help invest around £250 million in renewable projects in the UK and Europe.
Greg Jackson, the founder and chief executive of Octopus Energy Group, announced the acquisition of Octopus Renewables on March 26th and said: “To accelerate the global shift to renewable energy, we would like more control over renewable generation so we can…deliver cheaper electricity, sourced locally, when the wind’s blowing and the sun’s shining…make every green electron matter and deliver the green energy transition faster and cheaper for everyone”.
For a company that has come this far so quickly, Octopus Energy is not showing any signs of resting on their laurels and plan to supply and generate enough energy to power over 50 million homes globally by 2027. They also hope to match that customer base by leasing out their software platform to other energy suppliers globally.