Eversheds Sutherland has advised Octopus Energy Group Limited (Octopus Energy), the UK’s largest energy supplier, on its first China joint venture with Hangzhou Bicheng Energy Development Co., Ltd. (PCG Power) to trade renewable energy across China.
The deal marks Octopus Energy’s entry into China’s renewable energy market.
The new joint venture, named Bitong Energy, will combine PCG Power’s experience as one of China’s leading and fastest growing investors and solutions providers in the commercial and industrial (C&I) renewable energy sector, with Octopus Energy’s world class, cutting edge technology for green energy trading and optimisation. Together, they’ll power China’s rapidly expanding spot power markets – where energy is bought and sold in real time for a smarter, more efficient grid.
By 2030, Bitong Energy aims to trade up to 140 TWh of renewable power a year – roughly equal to the UK’s entire current green energy output – generating around £50 million in annual profits, with half flowing back to the UK.
Within five years, the joint venture has an ambition to hit a £500m+ valuation, strengthening the UK economy by exporting British software and engineering expertise. Alongside trading, Octopus Energy will roll out its world-leading software to boost performance and maximise the value of China’s fast-growing battery and renewable fleets.
The Eversheds Sutherland team was led by Partners Jack Cai, Richard Cao and Cedric Lam, and was supported by Associates Helen Huang and Koon-Yiu Tse.
Kiran Arora, Client Partner, Eversheds Sutherland, said:
“We have built a strong partnership with Octopus Energy, helping them achieve their ambitions in both new and established markets across the globe. Octopus Energy’s entry into the world’s largest renewable energy market is significant for many reasons and we are immensely proud to have supported Octopus Energy on this strategic joint venture.”
Jack Cai, Partner, Eversheds Sutherland, said:
“It was a great pleasure to support Octopus Energy on this groundbreaking investment and the establishment of its first joint venture in China with PCG Power. I am proud that this project further demonstrated Eversheds Sutherland’s China FDI capabilities and our commitment to assisting global clients in navigating the complexities of operating in the Chinese market.”
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