Octopus Energy agrees $600m deal with former-VP Al Gore backed sustainable investment fund

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Octopus Energy is over the Moon to be able to announce a major partnership with Generation Investment Management, a $36 billion sustainable investment fund, founded and chaired by former US Vice-President and climate champion Al Gore. In line with their sole aim – backing sustainable businesses to drive transformative change – Generation are supercharging our mission with an investment of up to $600 million.

Driving a green energy revolution

As just about the fastest growing private business in the UK, 5 years ago, we set about laying the blueprint for Britian's green energy revolution.

Since then - beyond the 3.5 million British homes we now supply - we've gone global. We provide green power to homes and businesses internationally, including in Germany, USA, Spain and New Zealand. Our green energy platform, Kraken, not only enables an outstanding customer experience and cleaner, smarter energy for our customers, but for 25 million energy accounts around the world; Our multi-million pound centres for Net Zero and the Decarbonisation of Heat drive cutting-edge green research; and through Octopus Energy Generation, we’re Europe’s largest investor in solar energy, managing £3.4bn of renewable energy assets across the continent, and that’s only the beginning...

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This comprehensive whole-system approach to decarbonisation has caught the attention of some of the most impressive businesses and investors in energy across the globe, and after several rounds of investment, we’ve become a double, triple, and then a quadruple unicorn – with Generation’s investment meaning a valuation of $4.6bn.

Enter Generation Investment Management

With the UK energy market in a tough state, the need for investment in renewables and technologies to end our reliance on fossil fuels has never been clearer.

This agreement, which has been several months in the making, will see Generation take a stake of up to approximately 13% in our business as part of their Long-term Equity strategy. And we couldn’t be happier to have them on board.

In the words of Tom Hodges, Partner in Generation:

Octopus Energy has an extraordinarily good fit with Generation’s mission of investing over the long term to support system and climate-positive companies. The world is at the early stages of an unprecedented energy transition which is essential to reach the goals of the Paris Agreement. This can be done in a way that is better for the environment and consumers [and] Generation is pleased to partner with Octopus Energy to help build that future.

We couldn’t agree more. So what’s next?

Onwards and upwards

As we’ve said before, investment isn’t really the achievement in itself – it’s the fuel that will power our efforts to drive a cheaper, greener, fairer energy transition. In 2018, the leadership team of our fledging business were inspired by An Inconvenient Sequel, a follow-up to Mr Gore’s landmark documentary about climate change, An Inconvenient Truth. Set up with a vision of bringing cheaper, greener power to everything, we vowed then to supercharge our mission - and in the next 3 years we increased our customer tenfold, expanded our businesses up and down the energy retail chain, kicked off operations in 11 different companies and signed deals to license our technology to 100 million accounts globally by 2027.

Together with Generation, we’ll continue work to better join up green energy, integrating renewable generation and supply to guarantee green, flexible, better balanced smart grids all over the world. We’ll also be able to pump money into research that leverages storage and encourages smart energy usage to help us make the most of our clean, green electrons, even when the sun isn’t shining and the wind isn’t blowing. We’ll also be going further than ever before to bring the benefits of increasingly green electricity to less accessible sectors, like heating and transport.

We’re grateful to every single member of our team who’ve worked tirelessly to get us here, to every customer who’s chosen us and helped make this possible, and of course to the good folks at Generation for sharing in our vision - we’ll continue to do everything in our power to make it a reality.

Published on 16th November 2021 by:

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Greg Jackson

Founder

Hey I'm Constantine, welcome to Octopus Energy!

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