UK's Octopus Kicks Off Investment into USA Renewables Market

The United Kingdom’s largest electricity supplier Octopus Energy Ltd. has entered 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 USA, the company said in a 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 megawatts (MW), enough clean energy to power 20,000 homes and equivalent to removing 36,000 cars from roads, Octopus stated.

Greg Jackson, Founder of Octopus Energy, said, “Our first US renewables investment is a major milestone for us. As we supercharge our renewables deals worldwide, we’re set to invest $2 billion into the US clean tech market over the next few years. Green energy isn’t just the future, it’s the most cost-effective energy source here and now. The more we build, the faster we can power up a cheaper, greener energy system for everyone”.

The acquisition follows Octopus’ agreements with floating offshore wind tech company Ocergy and nature projects startup Cultivo in the country.

The company now manages a global solar power portfolio of 2 gigawatts (GW). It also has a further 1.7 GW of green energy projects such as onshore and offshore wind farms around the world, including in Europe and Australia, with projects in the pipeline in Asia and Africa, according to the release.

More Investors Join

Earlier in the month, Octopus Energy announced that Galvanize Climate Solutions and Lightrock joined as investors. This follows additional investments from Generation Investment Management and Canada Pension Plan Investment Board (CPP Investments).

Both deals have valued Octopus at $9 billion (GBP 7.2 billion), which is a 15 percent increase from the company’s last big funding round in December 2023, according to a separate news release.

Galvanize is a climate-focused investment firm headquartered in San Francisco, aiming to deliver capital and expertise to accelerate climate solutions around the world. Through its $1 billion “Innovation + Expansion Fund,” Galvanize is adding support for Octopus Energy’s expansion in North America.

Lightrock is a global investment platform dedicated to building a sustainable future. Headquartered in London, Lightrock manages capital across both public and private markets, a significant portion of which is dedicated to climate innovation.

Jackson said, “I’m thrilled to welcome Galvanize and Lightrock – backed by some of the world’s most successful investors with incredible track records. Their climate-focused investment is a powerful catalyst for our global expansion and will allow us to keep up the momentum to further drive our growth across North America, Europe and into emerging markets”.

“We share a mission to accelerate the clean energy transition through smarter, more sustainable systems worldwide. With their support, we’ll increase our global impact, ramp up innovation and scale our vision for reshaping the energy landscape globally,” he added.

Veery Maxwell, Co-Head of Innovation + Expansion at Galvanize, said, “In order to decarbonize, increased system optimization and flexibility services for the power sector are critical, particularly as the industry grapples with escalating load growth and distributed generation”.

“We believe Octopus’ capabilities are distinctly suited to support power market participants across the energy value chain and are looking forward to working with its leadership to accelerate growth across North America and beyond,” Maxwell remarked.

Nigel McCleave, Partner at Lightrock, said, “It is remarkable that in less than a decade since founding, Octopus has become the UK’s largest provider of home electricity – a testament to its fair treatment of customers, pioneering technology, and transformation of the consumer energy experience”.

“However, this feels like just the beginning; Octopus has the potential to transform so much more of the energy value chain for the better. The energy transition will require companies like Octopus to continue their trajectory of success, and we are excited to partner with a European leader that is not only succeeding, but which is already establishing itself as a truly meaningful company on the global stage,” McCleave said.

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