Octopus Energy has unveiled a partnership with Chinese firm PCG Power to establish a new renewable energy trading company in the world’s largest clean power market.
The announcement came during Prime Minister Keir Starmer’s official state visit to China on Friday, representing a significant push to export British energy technology abroad.
The newly formed enterprise, named Bitong Energy, marks Octopus Energy’s inaugural venture into the Chinese market. The deal arrives as Mr Starmer works to strengthen commercial ties with Beijing, notwithstanding warnings from US President Donald Trump about conducting business with China.
According to the energy supplier, the collaboration will focus on real-time energy trading within China’s rapidly expanding spot power markets, combining British technological expertise with local market knowledge.
Octopus Energy has struck a landmark deal with a Chinese firm during the Prime Minister’s visit
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Bitong Energy has set ambitious targets, aiming to handle up to 140 terawatt hours of renewable electricity annually by the end of the decade, a volume roughly equivalent to Britain’s entire current green energy output.
The joint venture aspires to achieve a valuation surpassing £500million within five years, which would represent a substantial boost to the UK economy through the export of British software and engineering capabilities.
Financial projections suggest the company could generate approximately £50million in yearly profits by 2030, with half of those earnings flowing back to Britain.
China’s renewable energy market currently stands at around 2.65 terawatt, according to Mordor Intelligence, with electricity consumption expected to increase by roughly a third over the coming five years.
Greg Jackson is the CEO of Octopus Energy | OCTOPUS ENERGY
Greg Jackson, founder and chief executive of Octopus Energy, said: “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.”
He added that the partnership with PCG “aims to do exactly that – exporting our world-class energy capabilities to grow our economies and speed up the shift to cheaper, cleaner more secure energy”.
Under the arrangement, Octopus will provide its energy trading software and optimisation technology, having previously separated its technology division Kraken to concentrate on energy operations.
PCG Power brings extensive experience as China’s fastest-growing investor and solutions provider in the commercial and industrial renewable energy sector.
“Energy Owls” actively manage their energy usage, check tariffs, and track their bills. | Uswitch
Li Wenxuan, chairman and chief executive of PCG Power, said: “We deeply value this strategic partnership with Octopus Energy.
“It marks a defining milestone for PCG Power and underscores our commitment to pioneering the future of energy in China.”
He described the collaboration as “part of China’s exploration into solutions for the energy trilemma: balancing security, sustainability, and affordability within its new energy and electricity markets”.
Bitong Energy will initially launch operations in Guangdong province, which serves as China’s leading spot market, before expanding across the country as additional regions open their markets.
Government mandates require at least 10 per cent of Chinese electricity to be traded on spot markets by the end of this year, creating significant opportunities for the new venture.
Earlier today, Octopus Energy customers unveiled a plethora of perks for customers as part of its loyalty scheme, including a brand new chance to win tickets to see RAYE.
As part of the Octoplus, customers can enter a competition to win tickets to see the BRIT Award-winning singer, with premium seats provided by Seat Unique. The competition is open to Octoplus members aged 18+, with winners chosen at random.
All a prospective watcher has to do is sign up to the draw in the Octoplus section of the Octopus Energy app by midnight on February 2.