Octopus Energy Group, Britain’s largest energy supplier, has announced a new joint venture (JV) with Chinese company PCG Power.
The joint venture, called Bitong Energy, focuses on the Chinese spot energy market, where energy is bought and sold in real time. PCG Power is an investor and provider of solutions in the commercial and industrial (C&I) renewable energy sector. Octopus will provide trading and optimization technology to the JV.
Bitong Energy aims to trade up to 140 TWh of renewable energy annually by 2030, generating annual profits of around £50 million. It aims to reach a valuation of more than £500 million within five years, an ambitious trajectory that follows on from that of recent years. Octopus spinout, Kraken Technologies.
It will first be launched in Guangdong Province, where the shift from administrative pricing to real-time, competitive pricing at marginal cost has been tested and is now operational. There are plans to expand to real-time prices across China, with the government targeting a national spot energy market by 2030.
Li Wenxuan, chairman and CEO of PCG Power, explained that the collaboration “represents part of China’s exploration of solutions to the energy trilemma – balancing security, sustainability and affordability – within its new energy and electricity markets.”
Octopus’ global expansion has seen the company sign deals with other energy companies Japan, Africa And Braziljust to name a few. It has mainly worked with Chinese companies in the past through its EV arm.
This particular announcement comes during British Prime Minister Keir Starmer’s official visit to China. He is the first British Prime Minister in eight years to travel to Beijing: Energy Minister Ed Miliband visited for ‘candid’ energy conversations in 2025the first UK energy secretary to do so since 2017, and has delivered improved market access, lower tariffs and investment deals.
Greg Jackson, CEO and Founder of the Octopus Group, and who sits in the cabinetwas part of the business delegation that traveled to Beijing with the Prime Minister.
Schroders Greencoat and CATL sign MoU for investment in battery energy storage
Schroders Group chief executive Richard Oldfield was also part of the group. During the meeting, Schroders Greencoat, the renewable energy and energy transition infrastructure manager of British asset management giant Schroders Capital, announced its own Chinese business involvement.
It has signed a Memorandum of Understanding (MoU) with CATL, a major Chinese battery manufacturer, under which the two will jointly develop and invest in battery energy storage projects across Europe, including the UK.
The two companies will develop an investment platform within a framework in which CATL will supply batteries for the Battery Energy Storage System (BESS), in which the platform will take a stake.
