With the energy crisis looming over us, the use of sustainable or renewable energy sources is one of the important necessities for the future of our planet. Octopus Energy, a British company specialising in sustainable energy, is making significant inroads in this direction.
Octopus Energy operates as a worldwide clean energy technology enterprise, propelling the development of an accessible and environmentally friendly energy system for the future Under its own retail brand, Octopus Energy delivers world-class customer service and cutting-edge energy products to 7.2 million households globally. Today its operations span 18 countries and the entire energy value chain.
Based in London, the company was established in August 2015, as a subsidiary of Octopus Capital Limited, with the backing of British fund management company Octopus Group. The company began trading in December 2015. Greg Jackson is the Founder and Chief Executive Officer of Octopus Energy.
Octopus Group is still the majority shareholder of Octopus Energy though Octopus Group has attracted four more investors – Origin Energy, Tokyo Gas, Generation IM and CIPPB – during the course of eight years of its super energetic journey.
Today, within a short span of eight years, the company is engaged in powering more than 5 million UK homes and businesses with award-winning 100 percent green electricity. In fact, by 2017, Octopus Energy reached 100,000 retail customers & launched Octopus Electric Vehicles. In 2018, the company launched Octopus Energy Services and in the following year had more than 1 million UK retail customers in its ambit.
Besides the UK, Octopus Energy has its beneficial tentacles (read operations) in France, Italy, Spain, Germany, Australia, Japan, New Zealand and the United States among other countries. After its acquisition of Shell Energy on December 2023, Octopus Energy has achieved the distinction of being the UK’s second largest domestic energy provider. Today Octopus Energy Group’s operations cover divisions which include Octopus Energy Retail, Octopus Energy for Business, Octopus Energy Services, Octopus Electric Vehicles, Octopus Energy Generation, Octopus Hydrogen, Kraken, Kraken Flex and the not-for-profit Octopus Centre for Net Zero.
Here it deserves a mention that Octopus Energy Generation is one of Europe’s largest investors in renewables; operating £4 billion worth of green energy generators across seven countries. Octopus Energy Services is engaged in installing affordable heat pumps, EV chargers, smart metres and more smart energy hardware to contribute towards building the homes of the future whereas Octopus Energy Vehicles is making electric cars the easy choice for everyone, with EV leasing deals, home charging, and smart green tariffs.
Octopus Energy Group’s Kraken technology platform has experienced remarkable growth, increasing from 17 million accounts two years ago to over 52 million by December 2023. In the UK energy retail sector, Kraken provides support to E.ON, EDF, and Good Energy, as well as clients across Europe, Japan, and Australia. Kraken’s services extend to water companies, electricity networks, renewable energy generators, and large-scale battery operators worldwide.
In 2021, Octopus Energy Group received investments from Generation Investment Management and Canada Pensions Plan Investments Board, resulting in a valuation of approximately $5 billion. During the same year, the company expanded its retail operations into Spain, France, and Italy, and secured a contract to manage 5 million accounts through a licensing agreement with EDF Energy.
By 2023, Octopus Energy Group’s valuation surged to $8 billion following additional investments from existing shareholders, marking a 60 percent increase since its last funding round in December 2021.. In December 2023, Octopus Energy Group announced 800 million USD additional investment from its existing shareholders.
“Octopus Energy’s focus on customer service and technology has not only driven us to market leadership in UK power, but we have built the UK’s leading specialist electric vehicle leasing business; in just two years we have almost doubled our renewable generation portfolio to $7.6bn (£6bn), and tripled the contracted accounts on our technology platform Kraken from 17 million to 52 million,” informed Greg Jackson.
The Octopus Energy Group, with over 5 million retail customers and management of 52 million accounts through Kraken, is poised to generate 10,000 green jobs solely in the UK over the next five years. It is steadily progressing towards its global objective of reaching 100 million customers by 2027.
Through its investment in smart technology, Octopus Energy has empowered over a million customers in the UK to save money amid the energy crisis. This investment not only provides better value but also enables individuals to take advantage of affordable power. In the past year alone, nearly £10 million has been refunded to customers through Octopus’s Saving Sessions, thereby aiding in reducing demand on the grid during peak times.
To support customers this winter, the company has recently doubled its OctoAssist Fund to £30 million, bringing the total support offered during the energy crisis to nearly £200m by holding energy prices below the cap, offering standing charge holidays, and the distribution of nearly 50,000 electric blankets free of charge to customers in need.
The awesome success of Octopus Energy has the potential to inspire many companies to venture into the sustainable energy business. However, it should be kept in mind that the vast scope of sustainable energy goes much beyond mere bottom lines; it is one of the few crucial aspects on which the future of humankind hinges on.
