Octopus Energy Strikes Landmark Deal to Supply Renewable Power in China
Britain’s largest energy supplier Octopus Energy has struck a deal to supply power in China, marking a significant expansion into the world’s biggest renewable energy market.
The agreement, announced during Prime Minister Keir Starmer’s official visit to Beijing, will see Octopus partner with state-backed utility PCG Power to trade renewable electricity across China. Octopus will provide its energy trading software, while PCG Power will contribute local market expertise.
The joint venture, named Bitong Energy, aims to trade up to 140 terawatt hours of renewable power annually by 2030. It is expected to generate around £50mln in yearly profits by the end of the decade, with roughly half returning to the UK, and is targeting a valuation of more than £500mln within five years.
Octopus founder and chief executive Greg Jackson said China’s large-scale investment in renewables has driven down costs worldwide. He added that the partnership would help «cut the cost of electricity» by combining British energy technology with China’s scale and manufacturing strength.
The deal comes as the UK government seeks to deepen economic ties with Beijing, despite ongoing concerns over human rights and warnings from the United States about closer engagement with China. It is also likely to fuel debate over Britain’s growing reliance on Chinese supply chains for net-zero technologies such as wind turbines and solar panels.
China already dominates global renewable hardware production, raising questions in the UK about energy security and cyber risks. Ministers are still considering whether Chinese turbine manufacturer Ming Yang should be allowed to build a factory in Scotland, even as Octopus signals plans to deploy Chinese-made turbines in future British wind projects.
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