Octopus Energy is continuing its global expansion with a move into the Spanish energy market following the acquisition of green energy startup Umeme.
The deal marks the first time the company, which now operates in 11 countries, is able to combine its renewable generation and supply business outside the UK.
Octopus Energy Spain is targeting 1 million Spanish energy accounts by 2027 as part of its wider ambition to secure 100 million globally in the same time frame.
Renewables accounted for almost half (44 per cent) of all electricity in Spain last year. The price of power purchase agreements (PPAs) also decreased more than in any other European country this year, as the share of renewables grew.
Launched in 2019 Umeme is a small supplier which serves almost 5,000 customers.
Octopus said its new base in Valencia on Spain’s southeast coast will serve as a “launchpad” for Octopus across the Mediterranean.
Octopus founder and chief executive Greg Jackson said: “We’ve been hugely impressed by Umeme’s entrepreneurial spirit and tech-led approach, which is very rare in the energy sector. Their brilliant team is a perfect fit for Octopus, and I am hugely excited to work with them to bring affordable green power and outstanding customer service to Spain.
“Our targets for Spain may be high, but I have no doubt that we will see a similar growth trajectory in Spain as we did in our other locations. Since the beginning of the year, our German customer base doubled and in the US we increased customer numbers by a factor of five. There is no reason why we can’t deliver the same outstanding results in Spain.”
Roberto Giner, managing director at Umeme, said: “It makes me very proud that Octopus took notice of us because of our customer-centric values and our unique customised operating system.
“Like Octopus, we’ve been committed to 100 per cent renewable energy from day one. Thankfully Spain is blessed with a lot of sun and strong winds. By joining Octopus, we can now help make the most of this renewable energy and speed up Spain’s transition to a fully green energy system.”
Octopus Energy retail already has operations in the UK, where it serves 2.4 million customers, as well as the US, Germany, Japan, Australia and New Zealand. Octopus Renewables meanwhile has assets in France, Ireland, Finland, Sweden, Spain and Australia.