Octopus Energy Group, a UK-based retail electricity and gas supplier, has revealed plans to acquire sister company Octopus Renewables for an undisclosed price.

The energy technology company (entech company) is said to have added two million customers since its launch less than five years ago. Currently, Octopus Energy Group is the fifth largest energy supplier in Britain.

According to the retail electricity and gas supplier, the transaction with its sister firm takes it deeper into the energy space. Octopus Energy Group will be adding generation capacity worth £3.4 billion into its green energy asset management portfolio from Octopus Renewables.

The deal will enable Octopus Energy Group to position itself among the largest operators and investors in Europe as far as renewable energy is concerned.

Octopus Renewables will retain its name, and also its leadership and people.

Chris Hulatt – Co-founder of Octopus Group and Chairman of Octopus Renewables said: “There is a huge opportunity here to unleash pent-up capital that can help deliver the green energy transition faster than anyone ever imagined.

“While existing funds will see no material changes to the activities under Octopus Renewables, we are hoping to enhance returns even more over time as we increase efficiencies along the energy supply chain and unlock a multitude of new investment opportunities.”

From June 2021, Octopus Energy Group will handle the European portfolio of Octopus Renewables under its new business unit – Octopus Energy Generation. The portfolio is said to have 300 plus clean energy assets with a total capacity of 2.8GW across six nations.

Zoisa North-Bond – CEO of Octopus Energy Generation said: “I’m incredibly excited to welcome the brilliant team behind Octopus Renewables into the Octopus Energy family and continue to grow this new side of our business.

“Combining the team’s in-depth investments and energy knowledge with our industry-leading energy tech platform Kraken, I’m convinced that we have what it takes to make this a reality while helping the UK to transform its energy system and build a strong green energy economy.”

By 2027, Octopus Energy Group intends to match its supply and generate enough power to cover over 50 million homes across the world.

The transaction is contingent on customary formal consents and also regulatory approval.

  Chris Hulatt, Octopus Energy Group, Octopus Group, Octopus Renewables, United Kingdom, Zoisa North-Bond