Octopus Energy Group is to acquire its renewable energy investment arm Octopus Renewables, adding £3.4 billion to its portfolio.
From June, the Group will manage Octopus Renewables’ European portfolio within its new business arm, Octopus Energy Generation, making it one of the largest green generation operators in Europe.
The move will help bring together a portfolio of more than 300 clean energy assets with a combined capacity of 2,800MW across six countries and the company’s supply business which currently serves two million domestic customers.
Greg Jackson, CEO and founder of Octopus Energy Group, said he thinks the acquisition will be a win-win for both companies, adding he’s “absolutely thrilled to join forces with Octopus Renewables, bringing the supply and the generation side of energy together under one roof”.
“This move will allow us to create a business that is unrivalled on the global stage; by combining our tech and consumer-led approach with the fund management expertise of Octopus Renewables, we can change the entire energy lifecycle, make every green electron matter, and deliver the green energy transition faster and cheaper for everyone.”
It follows Octopus Energy’s first move into the generation market when it acquired two wind turbines for its ‘Fan Club’ tariff, which provides customers lower cost energy based on wind speeds.
The energy supplier is planning to match its supply and generation, with enough renewable energy to power over 50 million homes around the world generated by 2027, to match its ambitious customer growth targets.
Octopus Energy Generation will be led by Zoisa North-Bond, who established Octopus Energy for business in 2018. By combining Octopus Renewables’ in-depth investment knowledge, and the energy tech platform Kraken, “I’m convinced that we have what it takes to make this a reality while helping the UK to transform its energy system and build a strong green energy economy,” she added.
The planned acquisition is subject to formal consent and regulatory approval.
Octopus Energy has grown exponentially since it was launched in 2015, recently hitting a $2 billion valuation due to a joint venture with Tokyo Gas that saw it expand into Asia. Additionally it has expanded into Silicon Valley in the US and Germany.