Octopus Energy Group has unveiled a major joint venture with PCG Power to trade renewable electricity in China, marking a significant expansion into the world’s largest clean energy market.
The deal was announced during Keir Starmer’s official visit to China, with Octopus founder and chief executive Greg Jackson joining the UK business delegation in Beijing.
The new venture, called Bitong Energy, will combine PCG Power’s position as one of China’s fastest-growing investors and solutions providers in the commercial and industrial renewable energy sector with Octopus’ proprietary software and expertise in green energy trading and optimisation.
Bitong Energy will initially focus on China’s rapidly expanding spot power markets, where electricity is bought and sold in real time to improve grid efficiency and reduce costs. China’s electricity demand is forecast to rise by around a third over the next five years, while government mandates require at least 10 per cent of power to be traded on spot markets by the end of this year.
By 2030, the joint venture aims to trade up to 140 terawatt hours (TWh) of renewable electricity a year, roughly equivalent to the UK’s current total green power output. Octopus estimates this could generate around £50 million in annual profits, with half returning to the UK economy.
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