Octopus Energy Group today launches its new renewables fund Octopus Energy Development Partnership (OEDP). It comes as the fund makes its debut investment in renewables developer Exagen to build new green energy and rapidly grow the UK's energy storage capacity. The €220 million OEDP focuses on investing in early stages of building new green energy, vital to help reduce Europe's dependence on gas imports and to lower energy bills in future.
Managed by Octopus Energy Generation, OEDP is targeting solar, onshore wind and energy storage projects in the UK and the rest of Europe. There's also potential to optimise assets through KrakenFlex, Octopus' rapidly growing flexibility and trading platform, which currently manages 1,300 MW of green energy assets. This latest multi-million pound deal sees OEDP take a 24% stake in Exagen. Exagen is working on large-scale solar and battery facilities, partnering with farmers, landowners and local communities to build projects that help bring energy security.
This deal includes the option to purchase one of the UK's largest batteries at 500 MW / 1 GWh located in the Midlands, England, scheduled to be operational by 2027. This standalone battery would be the UK's largest, and with the capacity to export the equivalent electricity usage of 235,000 homes in a single day. Batteries provide grid-balancing services by storing cheap green energy when it is abundant, and releasing it when it is needed. For further information see the IDTechEx report on Batteries for Stationary Energy Storage 2021-2031.
As part of the agreement, OEDP has also acquired three solar farms with batteries on-site in the Midlands and North East of England, which Exagen is currently developing. The solar farms have a combined capacity of approximately 400 MW and are scheduled to come online in 2023. Exagen already has 2 GW of solar and battery storage projects in their pipeline, which Octopus will be able to invest in once they're ready to build.
Octopus Energy Generation, one of Europe's largest investors in renewable energy, already manages £4.4bn of renewable energy assets across Europe. For years they've been backing renewable developers, and in the last year alone invested in floating offshore wind developer Simply Blue, onshore wind developers Wind2 in the UK and NorGen in Finland, and solar developer Gridsource in the UK.
Zoisa North-Bond, CEO of Octopus Energy Generation, comments: "This fund is helping to unlock huge amounts of new renewable energy across Europe, turbocharging the journey to greater energy security. The more new green power we can build, the faster we can reduce our dependence on gas imports and drive down energy bills for people in the UK and the rest of Europe."
Alex Brierley, Co-head of Octopus Energy Generation's fund management team: "Making the first investment from this new renewable development fund is a major milestone for us and we've got more coming up. Working with Exagen, there's a massive opportunity to scale solar and battery storage projects - and these will play an absolutely integral role in the flexible renewable energy system of the future."
Jeremy Littman, founder and CEO of Exagen, said: "All of us at Exagen are thrilled by this ground-breaking deal with Octopus, which will support us in our mission to build smarter, flexible renewable generation projects across the grid, enabling communities access to cleaner, cheaper energy. I believe our commitment to our staff, our technology-focused approach to operations, and above all our passion for local communities and the environment has aligned us with the Octopus team and we're all looking forward to delivering on our promise together."
About Octopus Energy Generation
Octopus Energy Generation is driving the renewable energy agenda and building green power for the future. This means reshaping the market by leading the transition to a cleaner, greener future through renewable projects connected more deeply to customers and businesses. As one of Europe's largest investors in renewable energy, its fund management specialist team launched in 2010 with a mission to accelerate the transition to a future powered by renewable energy. This team manages over 3 GW of renewable energy assets like wind and solar farms across 10 countries, worth £4.4bn. These renewable projects generate enough green energy to power 2 million homes every year, and is the equivalent of taking over 1 million petrol cars off the road. The business also launched the Fan Club in the UK 2021, the world's first local energy tariff that provides cheaper, greener energy to customers living near local wind turbines when the wind blows, with a discount of up to 50%. Thousands of people have got in touch asking for the Fan Club in their community. For more information, check out our website.
About Octopus Energy Group
Octopus Energy Group is a global energy tech pioneer, launched in 2016 to use technology to unlock a customer focused and affordable green energy revolution. It is part of Octopus Group, which is a certified BCorp. With operations in 14 countries, Octopus Energy Group's mission is going global. Octopus's domestic energy arm already serves 3.4 million customers with cheaper greener power, through Octopus Energy, M&S Energy, Affect Energy, Ebico, London Power and Co-op Energy. Octopus Electric Vehicles is helping make clean transport cheaper and easier, and Octopus Energy Services is bringing smart products to thousands of homes. Octopus Energy Generation is one of Europe's largest investors in renewable energy, managing a £4bn portfolio of renewable energy assets throughout the continent. All of these are made possible by Octopus's tech arm, Kraken Technologies, which offers a proprietary, in-house platform based on advanced data and machine learning capabilities, Kraken automates much of the energy supply chain to allow outstanding service and efficiency as the world transitions to a decentralised, decarbonised energy system. This technology has been licensed to support over 20 million customer accounts worldwide, through deals with EDF Energy, Good Energy, E.ON energy and Origin Energy. In December 2021, Octopus Energy Group was valued at approximately $5 billion following a $600 million investment from Generation Investment Management and a $300 million investment from Canada Pensions Plan Investments Board. Both investors back businesses that drive sustainability, promote green energy and tackle climate change. It was the company's third major investment round since launching to the market. For more information, check out our website.
Source and top image: Octopus Energy