Octopus Energy Group has formed 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, where Octopus founder and CEO Greg Jackson joined the UK business delegation in Beijing.
The new company, 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 space with Octopus’ proprietary software and expertise in green energy trading and optimization.
Bitong Energy will initially focus on China’s fast-growing 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 about a third over the next five years, while government guidelines require at least 10 percent 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 per year, roughly equivalent to the UK’s current total green electricity production. Octopus estimates this could generate an annual profit of around £50 million, with half of that going back into the UK economy.
The partners believe Bitong Energy could reach a value of over £500m within five years, helping to strengthen the UK economy by exporting UK-developed software, data and technical skills.
The company will launch in Guangdong province, China’s most advanced spot power market, and then expand to other regions as more markets open nationwide. In addition to trading, Octopus will use its technology platform to optimize performance and maximize returns from China’s growing fleets of batteries, wind and solar assets.
Greg Jackson said the partnership showed how British innovation could benefit from China’s scale in clean energy manufacturing.
“China’s investments in scale and innovation have made solar, wind and batteries significantly cheaper,” he said. “There is now a huge opportunity for the UK to thrive by developing smart solutions that use these technologies to reduce electricity costs.
“Our partnership with PCG is about exporting world-class UK energy capacity, strengthening both our economies and accelerating the transition to cheaper, cleaner and safer energy.”
Li Wenxuan, chairman and CEO of PCG Power, called the deal a milestone for the company and for China’s energy transition.
“By integrating Octopus Energy’s world-leading technology and algorithm expertise with our extensive local market knowledge, we will create strong synergies,” he said. “Together, we aim to provide Chinese commercial and industrial customers with smarter, cheaper and more reliable energy services while supporting China’s green transformation.”
The joint venture builds on Octopus Energy Group’s wider strategy to export UK clean energy technology abroad. The company has already established international software partnerships to reduce energy costs, improve grid flexibility and expand its electric vehicle and battery offerings.
Last year, Octopus launched its Power Pack Bundle with BYD, allowing electric vehicles to act as “batteries on wheels.” Through Octopus Electric Vehicles, the group has also helped introduce brands such as OMODA, Jaecoo, Geely and XPENG to the UK market.
The China partnership represents one of Octopus Energy’s most ambitious international moves to date, positioning the company at the center of global renewable energy trading as spot markets expand worldwide.
