Octopus Energy enters China with energy trading joint venture
Octopus Energy, a UK-based renewable energy developer and supplier, has announced a new joint venture with China’s PCG Power. PCG, backed by Singaporean sovereign wealth fund Temasek among others, is China’s leading renewable energy supplier for the commercial and industrial market.
The deal, announced during UK Prime Minister Keir Starmer’s visit to China, marks Octopus Energy’s entry into the country. The JV – Bitong Energy – will target green energy trading in China’s spot power markets.
In a statement, Octopus said the JV will aim to trade up to 140TWh of renewable energy by 2030. That translated to expected profits of £50m annually and a valuation target of £500m over the next five years.
“China’s investments in scale and innovation have made solar, wind energy and batteries cheaper. Now there’s a huge opportunity for Britain to succeed as we build the solutions that use these products to cut the cost of electricity”, said Octopus Energy founder and chief executive Greg Jackson.
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Li Wenxuan, chairman and CEO of PCG Power welcomed the deal. The partnership with Octopus Energy, he notes, is a ‘defining milestone’ for the company.
“Such collaboration represents part of China’s exploration into solutions for the energy trilemma – balancing security, sustainability, and affordability – within its new energy and electricity markets”, he added.
The JV will first launch in Guangdong province, home to a large spot market, before pursuing a national expansion.
