Octopus Energy Group has announced a major joint venture with China’s PCG Power, marking the UK firm’s formal entry into the world’s largest clean energy market and significantly expanding the global footprint of British energy software and trading technology.
The partnership, unveiled during the UK Prime Minister’s official visit to China, will create a new company called Bitong Energy, focused on trading renewable electricity across China’s fast-growing spot power markets. Octopus founder and CEO Greg Jackson joined the UK business delegation accompanying the visit, underscoring the deal’s political and economic significance.
Bitong Energy combines PCG Power’s position as one of China’s leading investors and solution providers in the commercial and industrial renewable energy sector with Octopus Energy’s proprietary technology for real-time power trading, optimisation, and asset management. The venture will initially launch in Guangdong province, China’s most advanced electricity spot market, before expanding nationwide as additional regional markets open.
China’s electricity consumption is expected to rise by roughly one-third over the next five years, driven by industrial growth, electrification, and data center expansion. At the same time, regulators are accelerating power market reforms, with mandates requiring at least 10% of electricity to be traded on spot markets by the end of this year. These changes are creating opportunities for sophisticated trading platforms capable of managing intermittent renewable supply, price volatility, and grid constraints.
By 2030, Bitong Energy aims to trade up to 140 terawatt-hours of renewable electricity annually—roughly equivalent to the UK’s current total green power output. The joint venture is targeting annual profits of around £50 million, with approximately half expected to flow back to the UK. Within five years, the partners expect the business to achieve a valuation exceeding £500 million, positioning it as one of the most significant UK clean tech exports to Asia.
Beyond power trading, Octopus plans to deploy its software stack to improve the performance and revenue potential of China’s rapidly expanding fleet of batteries and renewable generation assets. As battery storage becomes increasingly critical to balancing China’s solar- and wind-heavy grid, optimisation technology is emerging as a key differentiator in power markets.
The deal builds on Octopus Energy Group’s broader strategy of exporting British energy technology rather than capital-intensive generation assets. The company has pursued similar partnerships globally, leveraging its software to reduce costs for consumers and utilities while accelerating the integration of renewables, electric vehicles, and storage.
