Octopus Energy has taken its first steps into Germany following the acquisition of Munich-based 4hundred in 2019.
Octopus Energy Germany is targeting the sign up of 1 million customers by 2024, with an initial investment of €80 million (£71 million) in the market to help fuel the expansion.
It is hoping to offer its new customers in Germany “many of the perks” it provides in the UK. Octopus Energy CEO Greg Jackson said the location of German office in the “tech hub” of Munich was “fantastic” as it means that it’s close to leading companies of the automotive industry and bespoke EV tariffs – like those offered in the UK – are “right at the top of our list”.
Alongside expansion in its home market – with a new office opening, the acquisition of energy software firm Upside Energy and plans to establish a new tech hub in Manchester – the supplier has also been making moves internationally, with Germany being the latest country on its radar.
The country was a target for the energy supplier due to its high prices for electricity, which it said is resulting in customers being reluctant to adopt clean technologies such as electric vehicles (EVs) and heat pumps despite taking an “early lead” in the energy transition.
It has also expanded into the US, however, having acquired Silicon Valley-based startup Evolve Energy in a £3.9 million deal. Octopus Energy US announced it would begin operating in the country in September 2020, targeting 25 million energy accounts by 2027.
Octopus also saw investment in May 2020 from Australian energy firm Origin Energy, which acquired a 20% stake in a transaction costing over €330 million (£294 million), resulting in Octopus becoming a unicorn and itself being valued at €1.5 billion (£1.3 billion).
It plans to rollout its proprietary cloud-based energy technology platform Kraken in both the US and Germany following its moves into the markets.
UK suppliers such as E.On and Good Energy have also entered into agreements to use the Kraken platform, with the latter hoping this would help drive operating cost savings in its business, while also paving the way for further growth.
“Combining our knowledge of the market and Octopus’ industry-leading tech platform, we’re confident that we can make a big green dent in the German energy sector in less than 4 years,” Andrew Mack, CEO of Octopus Energy Germany, added