The global energy and technology group is planning to invest £1.2 billion into solar and wind generation in the region, with half of the money going into Japanese renewables. The company is committing a further £300 million to expand its tech innovation and energy retail hub in Tokyo. This will enable the business to increase its headcount tenfold by 2027, creating 1,000 green jobs for UK and local talent.
The Tokyo tech hub has played a major role in developing cutting-edge features for Octopus’ tech platform Kraken. Increasing investments in this team will unlock efficiencies and create more world-first solutions to drive down bills for consumers in the UK and abroad.
The move builds on Octopus’ already successful partnership with Japanese energy giant Tokyo Gas, which saw the two companies launch a joint venture in 2021.
With almost 200,000 retail customers, Japan is now Octopus’ second largest market after the UK. The new business is growing at an incredible speed, adding thousands of domestic customers each week, and targeting millions of customers in the next few years.
Octopus’ generation team will further leverage this strategic partnership to raise £400 million from Asia-Pacific investors over the next five years to build more UK wind and solar farms whilst bringing vital energy expertise to Europe and strengthening supply chains.
The investment comes as Japan works to shift towards a clean energy future - propelled by the recent G7 ministers’ agreement to speed up renewable energy development - collectively pledging to increase offshore wind capacity by 150 GW by 2030 and solar capacity to more than 1 TW.
“I am pleased to welcome the significant investment Octopus Energy is making in Japan's renewable energy sector” said Julia Longbottom, British Ambassador to Japan. “This investment demonstrates Octopus Energy’s strategic foresight and commitment to sustainable development, and is a vote of confidence in Japan's vast and largely untapped renewable energy potential. Japan's renewable energy market is ripe for investment. Now is the right time for British companies to step up collaboration with our Japanese partners, bringing together our shared expertise and commitment to green energy. The mutual benefits are profound, from economic growth and job creation to technological advancement and environmental sustainability. The launch of our newly-forged UK-Japan renewable energy partnership marks a significant milestone in our bilateral collaboration; one that could set the stage for a boom in renewable energy projects in Japan. As we navigate this new era of energy transition, I am confident that UK companies, exemplified by Octopus Energy, will play an integral role in shaping a sustainable and prosperous future for the UK and Japan.”
Greg Jackson, Founder of Octopus Energy Group, added that international cooperation is the key to creating an energy transition which benefits consumers and economies as well as the climate.
“Our partnership with Tokyo Gas has grown ever stronger and I’m delighted to be bringing even more investment to Japan and into the UK” Mr Jackson said. “Linking our businesses in Australia, New Zealand and Singapore to the UK and Europe, our operations in Japan have helped create a unique global technology ecosystem benefiting everyone.”
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade agreement has played a vital role in facilitating Octopus’ expansion, providing UK companies with increased protection and opportunities in member states. This bold investment not only solidifies Octopus’ position as a global leader in renewable energy and technology, but also strengthens ties between the UK and CPTPP member nations.
Furthermore, the UK-Japan Framework Agreement on renewables and offshore wind enables both countries to collaborate on innovative projects, sharing expertise, and capitalising on the immense potential of offshore wind power.
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