Octopus Energy Group has added £3.4 billion worth of renewable energy projects to its portfolio with the acquisition of sister company Octopus Renewables.
From June the large retailer will manage Octopus Renewables’ European portfolio of more than 300 green assets under new business arm Octopus Energy Generation.
Both Octopus Energy and Renewables are under the umbrella of Octopus Group. Its co-founder Chris Hulatt said he hoped the move would unlock a “multitude of new investment opportunities”.
The portfolio, which spans six countries, has a combined capacity of 2,800MW and last year generated enough energy to power more than 1.2 million homes.
Hulatt said: “There is a huge opportunity here to unleash pent-up capital that can help deliver the green energy transition faster than anyone ever imagined.
“While existing funds will see no material changes to the activities under Octopus Renewables, we are hoping to enhance returns even more over time as we increase efficiencies along the energy supply chain and unlock a multitude of new investment opportunities.”
The retailer, which recently surpassed 2 million customers, is by 2027 planning to match its supply and generate enough power for more than 50 million homes globally, in line with its ambitions for customer growth.
In January Octopus Energy made its first move into the generation market by acquiring two wind turbines and launched its “Fan Club” tariff which it claims is a world first that gives customers cheaper energy when local wind speeds are up.
Founder and chief executive Greg Jackson said: “We are 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.”
Octopus Energy Generation will be run by Zoisa North-Bond who established Octopus Energy for Business in 2018.
She said: “I’m incredibly excited to welcome the brilliant team behind Octopus Renewables into the Octopus Energy family and continue to grow this new side of our business.
“Combining the team’s in-depth investments and energy knowledge with our industry-leading 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.”