Entech pioneer Octopus Energy launches in Germany
- British tech unicorn picks Germany as first market for European expansion
- Fast-growth disrupter targeting 1 million customers in Germany by 2024
- Rapid expansion fueled by initial investment of €80 million
- Munich-based energy startup 4hundred to become Octopus Energy Germany
London/Munich, 24 November 2020. Entech pioneer Octopus Energy today launches in Germany on a mission to disrupt the market and deliver contract freedom and innovative tariffs for customers.
Octopus Energy Germany, as the new business will be named, is targeting 1 million customers by 2024 and committed to fuel this rapid expansion with an initial investment of €80 million in the market.
Octopus Energy first entered the market with the acquisition of Munich-based energy startup 4hundred in September 2019. After a year in which 4hundred was integrated into the Octopus family, Octopus Energy Germany is now ready to start its rollout.
The move marks the latest step in Octopus’s international expansion, following recent launches in the US and operations in Australia. The renewable energy supplier is the UK’s fastest growing private company, having gained 1.7 million customers since launching 4 years ago. In April 2020, it became the UK’s latest tech ‘unicorn’, valued at €1.5 billion after Australia’s leading energy company Origin Energy acquired a 20 percent stake for more than €330 million.
At the heart of Octopus’s success is Kraken, its proprietary cloud-based energy technology platform. The scalable platform provides industry leading operational efficiency and outstanding service quality. Above all, Kraken is designed to drive the smart grid, giving customers access to cheaper electricity when more renewable energy is available. Octopus is now bringing this innovation to Germany, speeding up the country’s transition to a greener, cheaper, and fairer energy system.
For far too long, German households have been enticed into switching energy providers with the promise of large upfront savings. They then find themselves locked into contracts where the true price only becomes clear after the first year, at which point they often find themselves locked in for another 12 months. Energy providers often put more emphasis on marketing than on genuine innovations that can drive down energy bills.
Octopus Energy will offer German customers access to cheaper, greener power for their homes and electric vehicles. Energy prices will be set transparently, without nasty surprises, and customers will have the freedom to switch whenever they want. Customers will also enjoy many of the perks that Octopus Energy provides in the UK, including relentless focus on customer service excellence and innovative tariffs to make green energy cheap energy.
Octopus Energy CEO and founder Greg Jackson said:
“It’s been a very exciting year in which we learned about the German market and welcomed 4hundred into the Octopus Energy family. Now we’re ready for our big launch, and I’m delighted that our German team, which already includes 30 brilliant minds, will lead our push into the market.
“Our office will be based in Germany’s tech hub Munich, close to leading companies of the automotive industry. That’s fantastic because like in the UK, we will soon introduce innovative electricity tariffs for new forms of energy consumption – and bespoke tariffs for EV drivers are right at the top of our list.
“At the same time, we will offer our customers the greatest possible flexibility and the same excellent customer service that our customers in the UK already enjoy."
Andrew Mack, CEO of Octopus Energy Germany, said:
“Germany took an early lead in the green energy transition, serving as a role model to many other countries around the world. But despite the impressive achievements in greening its power generation, Germany now has the highest prices for electricity in Europe – which is why customers are still reluctant to adopt clean technologies such as electric cars or heat pumps.
“Our tech-enabled tariffs will give German households and EV owners access to cheaper greener power, supporting the government in its efforts to supercharge the uptake of EVs and reach its 2030 climate goals.“
“Combining our knowledge of the market and Octopus’ industry-leading tech platform, we’re confident that we can make a big green dent in the German energy sector in less than 4 years. Throw in contract freedom too and we’re confident we will have one million customers by 2024.
To become a customer of Octopus Energy, please visit www.octopusenergy.de
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Press Contact UK
T: +44 7897 699 195
Press Contact Germany
T: +49 176 622 275 39
About Octopus Energy
Octopus Energy Group was launched in 2016 with a vision of using technology to make the green energy revolution affordable whilst transforming customer experiences. Its domestic energy arm already serves 1.7 million customers with cheaper greener power. Octopus Energy for Business manages over 20,000 customers with proprietary energy offerings. Octopus Electric Vehicles is helping make clean transport cheaper and easier, and Octopus Energy Services is bringing smart products to thousands of homes.
All of these are made possible by OEG'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 17 million accounts worldwide, through deals with Good Energy, E.ON energy, Origin Energy, and 4hundred.
The business is backed by Octopus Group, a financial services and energy firm, which manages more than £8.6bn of funds and has invested more than £2.7bn in renewable assets across Europe. In April 2020, Octopus Energy Group became a UK tech unicorn, valued at well over £1 billion following an investment from leading Australian energy company Origin Energy. With operations in Germany, Australia and the US, Octopus Energy Group's mission to drive the affordable green revolution is going global. For more information, check out our website.
4hundred launched in 2017 with the aim to make energy simpler and more affordable for everyone. Three values guide the company’s approach: Do Good, Be Honest and Treat People Fairly. This translated into a business model where contracts can be canceled on a monthly basis, energy is sold at a cost price plus a flat service fee, and service is 100% digital. These innovations led to 4hundred being awarded the title of Germany’s fairest renewable energy company by Focus Money in 2019. 4hundred was acquired by Octopus Energy in August 2019.
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