Octopus Energy has signed two partnership agreements with Masdar as the groups seek to address mounting pressure on electricity networks in the UK and accelerate clean energy deployment across Africa.
The memoranda of understanding, signed during Abu Dhabi Sustainability Week, focus on easing grid constraints for data centres in Britain and developing decentralised renewable energy systems for commercial and industrial users in African markets.
In the UK, Octopus and Masdar plan to collaborate on identifying underused capacity within local distribution networks and designing energy systems around those “hidden” pockets of availability. The approach is intended to help data centre developers secure power more quickly, at a time when connection delays for both renewable projects and major electricity users can stretch for years.
Demand from data centres, driven in part by artificial intelligence workloads, is rising rapidly, placing further strain on networks already struggling to accommodate new generation. The partners’ model combines on-site solar generation, battery storage and flexible grid connections to reduce reliance on large-scale network upgrades.
Octopus will deploy its Kraken technology platform to balance on-site generation, storage and grid supply, aiming to maintain reliability while shifting consumption to cheaper periods. The company says this could lower operating costs for data centres while supporting wider system stability.
Under a second agreement, the two groups will work together to expand clean energy infrastructure for businesses across Africa, initially focusing on South Africa before moving into other countries. The partnership will develop local grids and distributed energy systems designed to support manufacturing, job creation and productivity in regions where underinvestment in electricity networks remains a major constraint on growth.
Masdar will lead on scaling the projects, drawing on its experience in utility-scale and distributed renewables, while Octopus contributes technology and operational expertise. The initiative aligns with Masdar’s involvement in the Power Africa Initiative, which aims to catalyse hundreds of millions of dollars in investment in renewable energy and grid infrastructure.
Greg Jackson, founder and chief executive of Octopus Energy, said the partnership would help accelerate practical solutions to energy bottlenecks. “This is about delivering projects that make energy cheaper, cleaner and unlock real opportunities for businesses and industry,” he said.
Mohamed Jameel Al Ramahi, chief executive of Masdar, said the agreements reflected a shared commitment to expanding access to renewable energy in the UK and Africa, particularly as power demand rises in the AI era.
The companies already work together in the UK, where Masdar licensed Octopus’s Kraken platform in 2023 to manage its battery storage portfolio.
