Octopus Energy’s $800M Investment Marks a Leap in Renewable Energy Deployment
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Company aims to play major role in accelerating renewables following COP commitments.
- Existing investors deploy $800 million in latest funding round, valuing the 8-year-old company at almost $8 billion
- $800 million investment to accelerate international growth and expansion of low carbon technologies, especially heat pumps
- Investment expected to create 3,000 green jobs in UK alone in 2024
Octopus Energy Group, the UK’s largest power supplier and the owner of the Kraken technology platform, announces $800m (£625m) additional investment from its existing shareholders.
“Octopus’ global footprint has scaled significantly, led by the company’s exceptional team, leading Kraken technology platform and innovative customer proposition. We’re delighted to further our investment in Octopus and enable the expansion of their future energy solutions to many more customers around the world.”
This new investment values the private company at $7.8bn (£6.2bn), a 60% increase since its previous investment round in December 2021.
Australian and Japanese giants Origin Energy and Tokyo Gas, one of the world’s largest pension funds, Canada Pension Plan Investment Board (CPP Investments), and sustainability-focused investors, Generation Investment Management are all participating in this round.
Greg Jackson, Founder of Octopus Energy Group, said: “Octopus Energy’s focus on customer service and technology has not only driven us to market leadership in UK power, but we’ve built the UK’s leading specialist electric vehicle leasing business, in just two years we’ve almost doubled our renewable generation portfolio to $7.6bn (£6bn), and tripled the contracted accounts on our technology platform Kraken from 17 million to 52 million.
“We remain obsessive about customers – we’ve been awarded “Which? Recommended” an unprecedented 6 years in a row and according to consultants Bain**, Octopus Energy is rated 44 points higher than the next best company.
“2023 saw us launch into heat pump installation and manufacture our own models – we now need to drive real scale. This year, our non-UK business has more than doubled*** with Trustpilot scores of 4.8/5 in almost every country****.
“With the renewed commitment seen at COP and our model proven, we will invest to accelerate our growth and create a truly global clean energy giant.”
Origin Energy CEO Frank Calabria said of the investment: “The success of Octopus since our initial investment in May 2020 has exceeded all expectations and cemented our belief in its unique capabilities and strong platform for future growth.”
Nobuhiro Sugesawa, Chief Digital Officer at Tokyo Gas, comments: “Tokyo Gas has been advancing the retail electricity business in Japan through our joint venture, TG Octopus Energy, with Octopus Energy and most recently, we have started cooperating in renewable energy investments in Europe. Tokyo Gas believes that technology innovation is essential for future corporate growth. Through our partnership with Octopus Energy, we aim to provide our customers with services using the latest technology and clean energy. We look forward to growing with Octopus Energy.”
Bill Rogers, Global Head of Sustainable Energies at CPP Investments, said: “Octopus’ global footprint has scaled significantly, led by the company’s exceptional team, leading Kraken technology platform and innovative customer proposition. We’re delighted to further our investment in Octopus and enable the expansion of their future energy solutions to many more customers around the world.”
This news follows a number of Octopus Energy Group announcements around the world, including its inaugural project in Africa – a wind and solar farm in Sierra Leone – in partnership with Idris Elba. This will be the fifth continent and eighteenth operating country for the group. Octopus has just completed the acquisition of Shell’s Energy and Broadband business in the UK and Germany, and in clean transport the group has secured a £550m funding facility from Lloyds Bank for Octopus Electric Vehicles.
Octopus’s investment in smart technology has enabled over a million UK customers to save money during the energy crisis, and is delivering better value by helping people benefit from cheap power when renewables are abundant. In the last year alone, almost £10m has been returned to customers through Octopus’s Saving Sessions, helping reduce demand on the grid at peak times.
To support customers this winter, Octopus has recently doubled its OctoAssist Fund to £30 million, bringing the total support offered during the energy crisis to nearly £200m by holding energy prices below the cap, offering standing charge holidays, and the distribution of nearly 50,000 electric blankets free of charge to customers in need.
Octopus Energy Group’s Kraken technology platform has seen astounding success, from 17 million accounts two years ago, to over 52 million today. In UK energy retail, Kraken supports E.ON, EDF and Good Energy in the UK as well as clients in Europe, Japan and Australia. Kraken is also licensed to water companies, electricity networks, renewable generators and large scale battery operators across the world.
In the UK, Octopus has been “Which? Recommended” for an unprecedented 6 years in a row. The company continues to top Trustpilot ratings for energy suppliers and has won multiple awards, including one of TIME Magazine’s ‘100 Most Influential Companies’.