UK’s Octopus Energy, China’s PCG Power Form Joint Renewable Energy Venture as PM Starmer Visits China

The UK’s largest supplier of renewable energy, Octopus Energy, announced its joint venture with China‘s PCG Power. The announcement of the partnership between the two companies coincides with Prime Minister Keir Starmer‘s state visit to China.

In a press release on 30 January, the Octopus Energy Group announced its joint venture with PCG Power. The two energy firms will be trading renewable energy across the world’s clean energy market. This partnership also marks the entry of Octopus Energy into the renewable energy sector, while also taking a step toward ‘exporting British tech overseas.’

‘China’s investments in scale and innovation have made solar, wind energy, and batteries cheaper,’ said Octopus Energy CEO Greg Jackson. ‘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.’

‘We deeply value this strategic partnership with Octopus Energy. It marks a defining milestone for PCG Power and underscores our commitment to pioneering the future of energy in China,’ said Li Wenxuan, the CEO of PCG Power. ‘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,’ Li continued. ‘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.’

The Joint Energy Partnership

The new company formed by this partnership is called Bitong Energy, ‘will bring together ‘PCG Power’s experience as China’s leading and fastest-growing investor and solutions provider in the Commercial & Industrial renewable energy sector’ and Octopus Energy’s ‘world-leading cutting-edge technology for green energy trading and optimisation.’

Bitong Energy will be boosting China’s ‘spot power markets’ – referring to the sector in which ‘energy is bought and sold in real time’ for a smarter and more efficient alternative. The Chinese government has also required that at least 10 per cent of electricity to be traded on spot markets by the end of 2026, as the country’s electricity consumption is predicted to increase by a third in the next five years.

By 2030, Bitong Energy looks to trade up to 140 TWh of renewable energy a year which is equal to the UK’s current green energy output. This would bring around £50 million in annual profits, half of which is going back to the UK. The company will first launch in China’s Guangdong province, the leading spot market in the country, and will later expand.

PM Keir Starmer’s State Visit

The announcement of the two companies’ partnership was made during Prime Minister Starmer’s state visit to China. Starmer is looking to improve relations with China despite the US warning about doing business with the Asian country. Starmer was accompanied by leaders in the UK corporate sector during his visit, and prior to arriving in Beijing, told reporters that he planned to balance the engagement with China with national security concerns.

‘I’m a pragmatist, a British pragmatist applying common sense,’ said Starmer at the time.

Starmer also happens to be the first British Prime Minister to visit China since Theresa May in 2018. Relations between the UK and China have faced strain over the years due to concerns about Chinese espionage, Beijing’s support for Russia in the ongoing war with Ukraine, and its crackdown in Hong Kong.