Octopus Energy acquires renewables developer to boost British solar
- Backs solar developer Zestec to build 100+ solar projects on UK businesses’ rooftops
- Deal to increase solar assets Octopus manages by up to 11% by 2027
- Octopus’ latest step in funding developers to build new green power, helping lower energy bills
London, Friday 2nd December 2022 - Octopus Energy Group’s generation arm announces the acquisition of UK solar developer and asset manager Zestec Renewable Energy to build cheap solar power on British businesses’ roofs, helping to drive down energy bills.
Zestec is developing a pipeline of over 160 MW of new UK solar energy which will be sold to the organisations hosting the solar panels via power purchase agreements (PPA). This will allow SMEs, public sector organisations like schools and local councils, as well as large corporations to benefit from self-generated green power without footing the cost of the installation of the solar system.
Through a fund managed by Octopus Energy Generation, over 100 projects will be built by 2027, ranging from 100 kW to 7 MW. The clean energy generated will help reduce gas reliance and emissions, and is the equivalent of taking 40,000 petrol cars off the road.
Octopus is one of Europe’s largest renewable energy investors, and has invested in solar since 2010. The deal builds on Octopus’ existing partnership with Zestec announced last year to rapidly grow UK solar assets. Acquiring Zestec will boost the solar assets Octopus manages by up to 11%.
This is the latest in a string of deals by Octopus to drive the creation of new green power across the UK. This includes investing in solar and storage developer Exagen, floating offshore wind developer Simply Blue, and onshore wind developer Wind2 – all on behalf of the funds the team manages.
Zoisa North-Bond, CEO of Octopus Energy Generation, said: “There’s a significant untapped opportunity in the UK to generate more cheap green power from businesses' rooftops. This space is fast-growing and it’ll help bring more energy security and lower energy bills, all while allowing companies to reduce their carbon emissions.”
Simon Booth, COO of Zestec, said: “Having worked with the team at Octopus over the last two years, it has become clear that we have a shared ambition to scale in this exciting sector of the renewable energy market. Most importantly, there is a shared ethos, client focus and attention to quality that delivers the right outcomes for all.”
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About Octopus Energy Generation
Octopus Energy Generation is driving the renewable energy agenda and building green power for the future. This means reshaping the market by leading the transition to a cleaner, greener future through renewable projects connected more deeply to customers and businesses.
As one of Europe’s largest investors in renewable energy, its fund management specialist team launched in 2010 with a mission to accelerate the transition to a future powered by renewable energy. This team manages over 3 GW of renewable energy assets like wind and solar farms across 11 countries, worth £5bn. These renewable projects generate enough green energy to power 2 million homes every year, and is the equivalent of taking over 1 million petrol cars off the road. The business also launched the Fan Club in 2021, the world's first local energy tariff that provides cheaper, greener energy to customers living near local wind turbines when the wind blows, with a discount of up to 50%. Thousands of people have got in touch asking for the Fan Club in their community. For more information, check out our website.
About Octopus Energy Group
Octopus Energy Group is a global energy tech pioneer, launched in 2016 to use technology to unlock a customer focused and affordable green energy revolution. It is part of Octopus Group, which is a certified BCorp. With operations in 14 countries, Octopus Energy Group's mission is going global.
Octopus’s domestic energy arm already serves 3.4 million customers with cheaper greener power, through Octopus Energy, M&S Energy, Affect Energy, Ebico, London Power and Co-op Energy. Octopus Electric Vehicles is helping make clean transport cheaper and easier, and Octopus Energy Services is bringing smart products to thousands of homes. Octopus Energy Generation is one of Europe’s largest investors in renewable energy, managing a £4 billion portfolio of renewable energy assets throughout the continent.
All of these are made possible by Octopus’s tech arm, Kraken Technologies, which offers a proprietary, in-house platform based on advanced data and machine learning capabilities, Kraken automates much of the energy supply chain to allow outstanding service and efficiency as the world transitions to a decentralised, decarbonised energy system. This technology has been licensed to support over 20 million customer accounts worldwide, through deals with EDF Energy, Good Energy, E.ON energy and Origin Energy.
In December 2021, Octopus Energy Group was valued at approximately $5 billion following investments from Generation Investment Management and Canada Pensions Plan Investments Board. Both investors back businesses that drive sustainability, promote green energy and tackle climate change. It was the company’s third major investment round since launching to the market. For more information, check out our website.
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