Octopus Invests More in USA Solar, Allots $2.55B for UK Renewables

Octopus Energy Ltd’s generation arm is pushing further into U.S. renewables with two solar power development investments.

The United Kingdom (UK) electricity supplier has invested in solar farm developer Circal to rapidly scale their expansion. Circal, which is developing solar farms in the USA and Ireland, has multiple gigawatts (GW) of projects in its pipeline, Octopus said in a news release.

Circal is targeting the creation of 600 megawatts (MW) of new solar farms in the USA in the next five years, with a focus on Texas­­—enough green power for 40,000 Texan homes, according to the release.

UK-based and Octopus-backed solar developer Zestec is also establishing a presence in the USA to build solar panels on commercial and industrial businesses’ rooftops and land. The company is targeting Texas as well as the East Coast including Massachusetts, New York, and New Jersey to build new solar across hundreds of projects in the next five years.

Businesses like warehouses and logistics centers will be able to get solar panels installed by Zestec at no cost, allowing them to benefit from fixed prices and savings from harnessing the power of the sun, Octopus said.

The agreements were made on behalf of the Octopus Energy Development Partnership (OEDP) and Sky (ORI SCsp) funds it manages, the company said.

Zoisa North-Bond, CEO of Octopus Energy Generation, said, “The US continues to break its records with the amount of clean, cheap solar power it is building. We entered America’s renewables market just three months ago and have big ambitions to build even more green power. With these deals we’re helping power up the green energy revolution across the USA to create a cheaper, greener future”.

This is the latest in a string of deals Octopus Energy’s generation arm has made to accelerate the green energy transition in the USA, including investments in Ocergy, a floating offshore wind tech company in California, and nature projects startup Cultivo.

In June, Octopus announced its entry into the U.S. renewables market, targeting to invest $2 billion in generation projects by 2030.

Octopus acquired one solar farm in Ohio and another in Pennsylvania, kicking off its first renewable energy investment in the country, the company said in an earlier news release. The two solar farms were acquired from Vesper Energy Development, an experienced developer of renewable energy projects, and both farms have long-term energy supply deals in place.

The projects have a combined capacity of 100 MW, enough clean energy to power 20,000 homes and equivalent to removing 36,000 cars from roads, Octopus stated.

More Billions in Renewable Investments Planned for the UK

Meanwhile, Octopus said it plans to pump $2.55 billion (GBP 2 billion) into UK clean energy projects by 2030. The company is investing in four new solar farms being developed by BayWa r.e. in Bristol, Essex, East Riding of Yorkshire, and Wiltshire. The solar projects will have a combined capacity of 222 MW, in addition to a 30-MW battery located on one of the sites.

Construction on three of these solar farms will start later this year and the fourth in 2025. Due to be operational between 2025-2026, the farms will produce power for 80,000 homes, slashing emissions equivalent to removing 35,000 fossil-fuel cars from the road every year, according to a separate news release.

Octopus said it is also breaking ground on a new 12-MW battery in Cheshire, to store and zap enough power back into the grid to keep nearly 10,000 homes running a day. With these latest additions, Octopus now backs 16 onshore wind farms, 3 offshore wind farms, 3 battery projects, 138 solar farms, and thousands of rooftop solar projects in Britain.

The new solar farm deals were agreed on behalf of the Octopus Energy Development Partnership (OEDP) and Sky fund (ORI SCSp), managed by Octopus Energy Generation.

Further, Octopus recently increased its stake in Exagen, a fast-growing British solar and storage developer, to 100 percent through its OEDP fund. It first invested in Exagen in 2022.

North-Bond said, “The UK is on the verge of a green energy revolution. This £2 billion investment in homegrown renewables will help boost our energy security and pave the way for a more affordable energy future. Solar and onshore wind are among the cheapest energy sources available. By building closer to demand, we can maximize green electricity when it’s abundant and lower bills for customers nationwide”.

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