Highlights
- Joint venture aims to trade 140 TWh of renewable power yearly, equivalent to UK's entire green energy output.
- Bitong Energy expects £50m annual profits with half returning to UK, £500m valuation projected within five years.
- Partnership launched during prime minister Keir Starmer's visit to improve UK-China economic ties.
Octopus Energy has made its first foray into China through a strategic joint venture designed to trade renewable energy across the world's largest clean energy market.
The UK's largest energy supplier announced the partnership with China's PCG Power during prime minister Keir Starmer's official visit to China, aimed at strengthening economic relations between both nations.
The new business, named Bitong Energy, will combine PCG Power's position as China's leading investor in commercial and industrial renewable energy with Octopus's advanced technology platform.
The venture will initially launch in Guangdong province before expanding into additional regions.
Bitong Energy plans to trade up to 140 terawatt-hours (TWh) of renewable power annually roughly matching the UK's entire current green energy output.
The partnership targets approximately £50 m in annual profits, with half expected to flow back to Britain.
Both firms project the business will achieve a valuation of around £500 m within five years.
Greg Jackson, Octopus Energy founder and chief executive, told Reuters "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 the partnership aimed to export "world-class energy capabilities to grow our economies and speed up the shift to cheaper, cleaner, more secure energy.
"Li Wenxuan, chairman and chief executive of PCG Power, described the agreement as "a defining milestone" for his company.
"By integrating Octopus Energy's world-class technology and algorithmic expertise with our profound local insights and trading capabilities, we will generate powerful synergies," he said.
The announcement comes as Britain pursues closer economic engagement with China despite international tensions over trade policy.
