Octopus Energy Group, the UK’s largest energy supplier, has formed joint venture with China’s PCG Power to trade renewable energy across the world’s largest clean energy market. The company issued a statement during UK Prime Minister Keir Starmer’s state visit to China.
The new company, named Bitong Energy, will bring together PCG Power’s experience as China’s leading and fastest-growing investor and solutions provider in the Commercial & Industrial (C&I) renewable energy sector, with Octopus’ world-leading cutting-edge technology for green energy trading and optimisation.
Together, they’ll power China’s rapidly expanding spot power markets – where energy is bought and sold in real time for a smarter, more efficient grid.
China’s electricity consumption is forecast to grow by around a third over the next five years, with government mandates requiring at least 10% of electricity to be traded on spot markets by the end of this year alone.
By 2030, Bitong Energy aims to trade up to 140 TWh of renewable power a year – roughly equal to the UK’s entire current green energy output – generating around £50 million in annual profits, with half flowing back to the UK.
Within five years, the joint venture has an ambition to hit a £500m+ valuation, strengthening the UK economy by exporting British software and engineering expertise.
Launching first in Guangdong province – China’s leading spot market – Bitong Energy will then expand nationwide as new regions open up.
Alongside trading, Octopus will roll out its world-leading software to boost performance and maximise the value of China’s fast-growing battery and renewable fleets.
Greg Jackson, Founder and CEO 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.
“Our 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.”
Li Wenxuan, Chairman and CEO 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.
“By integrating Octopus Energy’s world-class technology and algorithmic expertise with our profound local insights and trading capabilities, we will generate powerful synergies. We look forward to working closely together to provide Chinese C&I customers with smarter, more cost-effective, and reliable energy services, contributing to China’s power market prosperity and its green transformation.
