Octopus Energy Group has formed a joint venture with PCG Power to trade renewable electricity across China.
The company said the deal marks its entry into the country’s clean energy market and was announced during the prime minister’s visit to China.
The new JV, named Bitong Energy, combines PCG Power’s commercial and industrial renewable experience with Octopus’ technology for green energy trading and optimisation.
The partners said they will support China’s expanding spot power markets, where energy is traded in real time.
Bitong Energy aims to trade up to 140TWh of renewable power a year by 2030, generating around £50m in annual profits.
Within five years the JV targets a valuation above £500m, they added.
Greg Jackson (pictured), founder and chief executive of Octopus Energy, said: “China’s investments in scale and innovation have made solar, wind energy and batteries cheaper.”
He added: “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,” stated Jackson.
Li Wenxuan, chairman and chief executive of PCG Power, said: “We deeply value this strategic partnership with Octopus Energy.”
He added: “It marks a defining milestone for PCG Power and underscores our commitment to pioneering the future of energy in China.”
He stated: “By integrating Octopus Energy’s world-class technology and algorithmic expertise with our profound local insights and trading capabilities, we will generate powerful synergies.”