The new JV, called Bitong Energy, will bring together PCG Power’s investment and solutions provider experience in the Commercial & Industrial (C&I) renewable energy sector, with Octopus’ technology for green energy trading and optimisation. This will 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 percent 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 £500 million+ 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 software to boost performance and maximise the value of China’s fast-growing battery and renewable fleets.
“China’s investments in scale and innovation have made solar, wind energy and batteries cheaper” said Greg Jackson, Founder and CEO of Octopus Energy. “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.”
The new joint venture builds on Octopus Energy Group’s track record of partnerships with leading international companies, focused on reducing costs for consumers while exporting British innovation.
“We deeply value this strategic partnership with Octopus Energy” added Li Wenxuan, Chairman and CEO of PCG Power. “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. Meanwhile, such collaboration represents part of China’s exploration into solutions for the energy trilemma – balancing security, sustainability, and affordability – within its new energy and electricity markets.”
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