Octopus Energy Group has formed a joint venture with China’s PCG Power to trade renewable electricity in the world’s largest clean energy market, marking a significant expansion of its international operations.
The partnership, announced during the prime minister’s visit to China, will see the two companies establish a new business, Bitong Energy, focused on trading power in China’s rapidly developing spot electricity markets, where energy is bought and sold in real time.
The deal represents Octopus’s first direct entry into China’s renewables trading sector and forms part of its wider strategy to export British energy technology and operational expertise overseas. The group will combine PCG Power’s experience in China’s commercial and industrial renewables market with Octopus’s software platform for energy optimisation and trading.
China’s electricity consumption is forecast to rise by around a third over the next five years, while government policy requires at least 10 per cent of power to be traded on spot markets by the end of this year. These reforms are creating opportunities for technology-enabled traders able to manage volatility and improve system efficiency.
Bitong Energy will initially operate in Guangdong, China’s largest and most advanced spot market, before expanding into other provinces as regulatory frameworks develop. Alongside trading activities, Octopus plans to deploy its software to enhance the performance of battery storage and renewable assets.
By 2030, the joint venture aims to trade up to 140 terawatt hours of renewable electricity annually — roughly equivalent to the UK’s current green power output — generating projected profits of about £50m a year, with around half returning to the UK. Within five years, the partners are targeting a valuation in excess of £500m.
Greg Jackson, founder and chief executive of Octopus Energy, said falling costs of solar, wind and batteries had created opportunities for countries able to develop advanced management systems. “Our partnership with PCG aims to export Britain’s energy capabilities and accelerate the shift to cheaper, cleaner and more secure power,” he said.
Li Wenxuan, chairman and chief executive of PCG Power, said the alliance would combine global technology expertise with local market knowledge to deliver more efficient services for Chinese customers, while supporting the country’s green transition.
The venture builds on Octopus’s expanding international footprint, which includes energy software partnerships and vehicle-to-grid projects. In recent years, the company has also worked with automotive groups such as BYD and supported the introduction of new electric vehicle brands to the UK through its Octopus Electric Vehicles business.
Industry analysts view the move as a significant test of whether UK-developed energy platforms can scale in highly regulated, high-volume markets, and as a potential template for further overseas expansion.
