Energy technology pioneer Octopus Energy Group and Sterlite Power have signed an agreement that aims to help decarbonise Indian industry and bring cheaper green power to consumers around the world.
The MoU, signed at COP26, will see the two companies explore several joint retail ventures. It is the first UK-India energy partnership since the Green Grids announcement launched by the UK Prime Minister Boris Johnson and Indian Prime Minister Narendra Modi at COP26 in November 2021.
The tie-up will aim to apply Sterlite Power’s transmission expertise in the UK and bring more competition to the established grid monopoly. The sector has been able to operate power grids much more efficiently, with cost reductions of up to 40% compared to legacy methods.
Together, Sterlite Power and Octopus are aiming to build renewable energy generation and storage assets in India and deploy affordable renewable power to large industrial, commercial users. The companies are hoping to also supply this cheap, green power to domestic consumers once the necessary regulations are put in place.
Octopus Energy Group’s success is based on Kraken, its proprietary energy technology platform, which provides operational efficiency and customer service whilst driving a greener grid by unlocking smart tariffs. The company recently received a $600 million injection from Generation Investment Management and a further $300 million from Canadian Pension Plan Investments to aid its rapid expansion. Octopus is now valued more than $5 billion, rivalling the valuation of many long-established energy giants.
Greg Jackson, CEO and founder of Octopus Energy Group, comments: “The transition to a smart, green energy system has been hampered by unwieldy grid systems that were built to control a few hundred power stations. These systems are not fit to manage millions of electric cars, heat pumps, solar panels and batteries that are all connected to the grid at the same time. What we need is a smart grid that can balance renewable generation with energy demand and drive down the cost.”
Pratik Agarwal, MD, Sterlite Power, said: “We are driven by our core purpose to enable access to reliable power while minimizing the impact on climate change. We look forward to exploring a host of opportunities that aim to decarbonise carbon intensive industries and empower consumers with green energy options towards a sustainable lifestyle.”