During the UK Prime Minister’s official visit to China, Octopus Energy announced a partnership with China’s PCG Power to launch Bitong Energy, a new joint venture that marks its entry into the world’s largest clean energy market. This partnership seeks to accelerate the global energy transition through cutting-edge technology solutions and international cooperation.
Bitong Energy: 140 TWh of renewable energy by 2030
Bitong Energy’s goal is to commercialize up to 140 terawatt-hours (TWh) of green power per year by 2030, equivalent to all of the current annual production of renewable energy the UK’s current annual renewable energy production. The deal would generate around £50 million in annual profits, with half of those profits going to the UK, reinforcing the role of energy as a bilateral economic driver.
Guangdong to be the gateway to the Chinese market
Bitong Energy will begin operations in Guangdong province, considered China’s main spot market. From there, the plan calls for a gradual expansion nationwide as other regional markets are liberalized.
The spot system allows power to be bought and sold in real time, and China has imposed mandates requiring at least 10% of electricity to be transacted under this model by the end of this year.
British technology for a more efficient energy system
Octopus will contribute its leading energy optimization software, capable of maximizing the performance of battery fleets and renewable plants. This technology will be critical to meet the projected 33% growth in Chinese electricity demand over the next five years.
Our partnership with PCG aims to export our world-class energy capabilities to drive growth in our economies and accelerate the transition to cheaper, cleaner and more secure energy.
Greg Jackson, CEO of Octopus Energy.
A new chapter in the internationalization of Octopus Energy
The creation of Bitong Energy is not an isolated move, the company has built a track record of international collaborations aimed at exporting British innovation in clean energy.
Among its recent achievements are partnerships with BYD to integrate electric vehicles to the grid as mobile storage, and its role in the entry of Chinese manufacturers such as XPENG, Geely, OMODA and Jaecoo into the UK market.
With a presence in 27 countries, more than 11 million customers and a renewables portfolio of £7 billion, Octopus consolidates its position as one of Europe’s most influential energy companies.
A £500 million valuation in five years
Bitong Energy has set a target of reaching a valuation in excess of £500 million within five years. This expansion represents not only a new financial milestone for both companies, but also a sign of the growing role of UK energy technology in international markets.
The partnership between Octopus and PCG Power demonstrates that the future of energy is about global collaboration, intelligent software and a commitment to sustainability.
Source: Octopus Energy