Energy giant has entered into a new strategic partnership with long-term investors, CPP Investments
Octopus Energy Group announced today an initial $330m funding boost from CPP Investments, bringing the fast-expanding clean energy group’s valuation up to circa $5bn.
The strategic partnership will see Canada Pensions Plan Investment Board (CPP Investments) invest an initial $330m in the clean energy pioneer with the aim of growing its capital over time in a bid to support the green energy revolution.
Octopus confirmed the investment will be used to help grow its smart grid customer service technology platform, Kraken, that currently supports 25 million accounts and 3GW of generation globally through both Octopus’s activities and partnerships with other energy companies, including E.ON, EDF, and Good Energy. Octopus aims to expand Kraken to manage 100 million accounts by 2027.
The investment will also contribute to developing Octopus’s smart grid capabilities and expanding the company’s green energy generation capacity. Octopus expects to double its global generation portfolio, securing clean power for an additional two million homes by 2025.
“In the decades to come, some of the most rewarding long-term investment opportunities in the global economy rest among those businesses that will enable, evolve and innovate along the path to a net zero world,” said Deborah Orida, chief sustainability officer, senior managing director and global head of real assets and CPP Investments.
“This investment and partnership with Octopus Energy, made through our Sustainable Energies Group, is a perfect example of how investors can work with leading tech-enabled energy companies to digitally disrupt the global energy system and support the evolution to a low carbon world.”
CPP Investment’s Sustainable Energies Group holds around $19.5bn in assets across the energy sector, including in renewables and wider clean tech innovation.
Greg Jackson, CEO and founder of Octopus Energy Group, welcomed the new investment. “Octopus has pioneered the technology that allows citizens to benefit from cheaper energy as it gets greener,” he said. “CPP Investments is a global force in energy investing, and their investment and partnership will enable us to build this truly innovative approach along the entire energy value chain.
“Innovating new ways to accelerate investment into the renewable energy revolution is vital to delivering governments’ net zero goals and the CPP Investments-Octopus partnership is globally significant, paving the way to billions of dollars of investment in the UK and globally. Make no mistake – this partnership is huge.”