Octopus Energy has confirmed it will make a £1.2 billion investment in the Asia-Pacific renewables sector by 2027.
The company stated it would allocate the capital to support both solar and wind generation in the region with an estimated half of this money set to go towards Japanese renewables.
Octopus first entered the Japanese market via a partnership with Tokyo Gas, Current± reported in December 2020. The agreement saw the companies launch the Octopus Energy brand in Japan as a 30:70 joint venture. Tokyo Gas provided working capital and growth funding, with the Octopus Energy Group taking $247 million (£184 million) of additional investment.
Expanding on this today (18 May), Octopus said it would commit a further £300 million to expand its tech innovation and energy retail hub in Tokyo. This hub has seen Octopus’ Kraken tech platform become increasingly popular.
The growth in Japan has also seen it become Octopus’ second largest market following the UK. The firm said that “the new business is growing at an incredible speed, adding thousands of domestic customers each week, and targeting millions of customers in the next few years.”
This is set to be leveraged further by the Octopus generation team which will use the strategic partnership to raise over £400 million from Asia-Pacific investors in the next five years to build more UK wind and solar farms whilst strengthening supply chains.
Greg Jackson, founder of Octopus Energy Group, said: “International cooperation is the key to creating an energy transition which benefits consumers and economies as well as the climate. Our partnership with Tokyo Gas has grown ever stronger and I’m delighted to be bringing even more investment to Japan and into the UK.
“Linking our businesses in Australia, New Zealand and Singapore to the UK and Europe, our operations in Japan have helped create a unique global technology ecosystem benefiting everyone. I’m excited to take it even further with today’s announcement.”
Octopus’ expansion comes as the Japanese Ministry of Economy, Trade and Industry (METI) and UK Department for Energy Security and Net Zero (DESNZ) pledged to work together to diversify energy supply sources “through the advancement of clean energy technologies particularly offshore wind and reducing our dependency on fossil fuels.”
Japanese companies are already investors in the UK renewables sector, and Prime Minister Rishi Sunak also announced today that Japanese companies would invest £17.7 billion in the UK.
“I am pleased to welcome the significant investment Octopus Energy is making in Japan’s renewable energy sector. This investment demonstrates Octopus Energy’s strategic foresight and commitment to sustainable development, and is a vote of confidence in Japan’s vast and largely untapped renewable energy potential,” said Julia Longbottom, British Ambassador to Japan.
“Japan’s renewable energy market is ripe for investment. Now is the right time for British companies to step up collaboration with our Japanese partners, bringing together our shared expertise and commitment to green energy. The mutual benefits are profound, from economic growth and job creation to technological advancement and environmental sustainability.”