UK startup Octopus Energy targets 50 million customers globally by 2027

Octopus Energy plans its customer expansion by bringing supply and generation into a single end-to-end business in a £3.4 billion ($4.7 billion) deal.

The deal sees Octopus Energy Group acquire Octopus Renewables comprised of more than 300 clean energy assets with a combined capacity of 2,800MW in six countries.

Octopus Energy launched itself in the UK energy market in 2016 and has grown rapidly with two million customers to date.

In October 2020 the company expanded into the US with the acquisition of the Texas startup Evolve Energy and a target of 25 million accounts in that country by 2027.

Related articles:
Octopus Energy launches into US market with startup acquisition
Uptake of Time of Use tariffs still low, but set to increase

In January of this year, Octopus Energy made its first move into the generation market with the acquisition of two wind turbines, one on South Wales and the other in Yorkshire. Accompanying this was the launch of a novel local time-of-use wind tariff for customers living nearby offering a price reduction when the wind picks up and the output from the turbines increases.

Another recent advance is an agreement with NatWest bank that enables customers to buy electric vehicle chargers at discounted rates and access Octopus Energy’s public charging network.

In March, Octopus Energy acquired Marvel Labs’ Configurable advanced energy retail pricing system, which will be integrated to its Kraken platform and enable the offer of more complex dynamic tariffs that can support the growth of renewable energies.

The company also has launched a new London-based research centre to develop tools and models for a green energy system, with an initial focus on residential heating and transport.

“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,” says Greg Jackson, CEO and founder of Octopus Energy Group.

Octopus Renewables with £3.4 billion ($4.7 billion) worth of generation capacity will retain its name but will be managed by Octopus Energy Group under a new business arm Octopus Energy Generation.

Octopus Energy considers the deal to provide a “shake up” to the global energy market and that it makes it one of the largest operators and investors in renewable energy in Europe.