Written by Chris Hulatt, co-founder of Octopus Group
Exiting news is coming thick and fast at Octopus these days. A couple of weeks back, I wrote about Octopus Renewables’ ground-breaking new partnership with Nest pension scheme. This week, I’m delighted to tell you about a transformational development within the Octopus Group.
Under the Octopus umbrella, we currently have two fast-growing businesses that are playing a critical role in advancing the clean energy transition. Octopus Renewables is already the one of the UK’s leading investor in renewable energy, while Octopus Energy is an award winning next-generation energy-supply company that’s delivering phenomenal growth.
Given their overlapping interests and expertise, we thought it made sense for the two companies to join forces. So that’s exactly what’s happening now. Octopus Renewables and Octopus Energy are combining to accelerate the green-energy revolution worldwide.
This is a huge opportunity. Bringing the supply and generation elements of Octopus under one roof will enable us to drive forward the clean energy transition like no other organisation on the planet. By marrying Octopus Energy’s tech-led energy expertise to Octopus Renewables’ fund-management skills, we can unleash pent-up capital by creating new business models that will deliver for institutional investors, energy creators and society at large.
The combined entity will be one of the largest investors in renewable energy in the UK and Europe. It also will supply more than two million UK customers with energy, and its portfolio will comprise more than 300 clean-energy assets across six countries, with a total capacity of 2,800 megawatts.
However, that’s just the start. Over the next few years, the combined business aims to power over 50 million homes across the globe. At the same time, it will enable institutional investors to back a growing portfolio of global renewables assets and help power the energy transition around the world.
The energy industry is in a state of dynamic change. In this rapidly evolving environment, a joined-up energy company with technology at its heart and a huge customer base should be set to thrive. We think that pure investment managers will struggle to compete.
Octopus Renewables’ investors have been supportive of our decision. They understand the potential competitive advantages it creates. It brings us closer to end-customers – the ultimate buyers of the electrons our assets generate – and gives direct access to Octopus Energy’s tech talent. That will allow us to optimise the performance of our assets. The move also brings us closer to energy markets, giving us greater insights and influence with regard to the shape of future energy markets.
The Octopus Renewables team will retain all of the culture, expertise and people that have powered its success so far. Nor will the move entail any changes to our existing funds. The same fund managers will run them with the same focus on delivering returns for our investors. We won’t change the way we invest. As the renewables market evolves, we will continue to unlock new investments for our investors. Today’s news will enable us to do this at pace.
Meanwhile, Octopus Investments will continue to work with our institutional investors to create relevant and exciting opportunities to access the returns and growth potential that the renewables market offers, while also playing a role to combat the climate crisis we are all facing.
Our ambitions are big. We want to change the world for the better and create a wealth of new investment opportunities along the way. By bringing our supply and generation capabilities together, we’re creating a hugely exciting opportunity for our investors as we advance towards a cleaner, greener and brighter future.
Personal opinions may change and should not be seen as advice or a recommendation. We do not offer investment or tax advice. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. Issued: March 2021.