Octopus Energy has announced an ambitious plan to invest $1.87 billion in the Asia-Pacific energy market by 2027 with an aim to accelerate the region’s transition to a cleaner and smarter energy system.
The company plans to allocate $1.49 billion toward solar and wind generation in the region, with a substantial portion of the funds dedicated to Japanese renewables. To support this expansion, Octopus Energy is committing an additional $373 million to expand its tech innovation and energy retail hub in Tokyo, which will enable the company to increase its workforce tenfold by 2027.
Japan, currently Octopus Energy’s second-largest market after the United Kingdom, has shown remarkable growth, adding thousands of domestic energy users each week and targeting millions more in the coming years. Octopus Energy’s Tokyo tech hub has been instrumental in developing cutting-edge features for its tech platform, Kraken. The increased investment in this team will help the company increase efficiencies and develop new and innovative energy offerings, the company said.
Investing in Asia-Pacific Energy
This move builds upon Octopus Energy’s successful partnership with Japanese energy giant Tokyo Gas, which led to the launch of a joint venture in 2021. Leveraging this strategic partnership, Octopus Energy’s generation team aims to raise nearly $500 million from Asia-Pacific investors over the next five years. These funds will be utilized to build more wind and solar farms in the U.K. while bringing energy expertise to Europe and strengthening supply chains.
The investment aligns with Japan’s clean energy development, particularly following the recent G7 ministers’ agreement to accelerate renewable energy initiatives. Collectively, the G7 ministers pledged to increase offshore wind capacity by 150 gigawatts and solar capacity to more than 1 terawatts by 2030.
Julia Longbottom, the British ambassador to Japan, expressed her support for Octopus Energy’s investment, highlighting its strategic foresight and commitment to sustainable development. She emphasized the vast renewable energy potential in Japan, emphasizing the mutual benefits of collaboration between British and Japanese companies in driving economic growth, job creation, technological advancement, and environmental sustainability.
Greg Jackson, the Founder of Octopus Energy Group, highlighted the importance of international cooperation in creating an energy transition that benefits consumers, economies, and the climate. He expressed his delight in bringing more investment to Japan and the U.K. and also pointed out the unique global technology ecosystem created through their operations in Japan, Australia, New Zealand, Singapore, the U.K., and Europe.
Hajime Nakamura, CEO of Octopus Energy in Japan, shared his excitement about the investment, stressing its significant contribution to expanding renewable energy in the Asia-Pacific region. Octopus Energy intends to drive sustainability in Japan through its smart technology and initiatives that empower customers to make the most of green electrons during abundant supply.
Octopus Energy’s expansion has been facilitated by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade agreement, which provides increased protection and opportunities for U.K. companies in member states. Additionally, the U.K.-Japan Framework Agreement on renewables and offshore wind enables both countries to collaborate on innovative projects, share expertise, and harness the potential of offshore wind power.