Key facts
- TG Octopus Energy aims to develop approximately 1,000 small-scale solar power plants in the greater Tokyo region by fiscal 2030.
- Octopus Energy Group is investing £1.5 billion in the Asia-Pacific energy market by 2027, with £1.2 billion earmarked for solar and wind generation.
- Half of the £1.2 billion investment will be directed towards Japanese renewables.
- Octopus Energy Generation has invested in Yotsuya Capital, a Japanese solar developer, to accelerate the development of 250 MW of new solar farms.
- Octopus Energy entered the Japanese retail energy market in December 2020 via a joint venture with Tokyo Gas.
TG Octopus Energy, a Japanese power retailer supported by the U.K.'s Octopus Energy, plans to develop approximately 1,000 small-scale solar power plants in the greater Tokyo region by fiscal 2030. This initiative aims to bolster the company's own energy generation capacity and mitigate risks associated with market volatility stemming from Middle East tensions.
Octopus Energy Group has committed £1.5 billion to the Asia-Pacific energy market by 2027, with a significant portion, £1.2 billion, allocated to solar and wind generation. Half of this investment is designated for Japanese renewables, underscoring the region's importance. Additionally, £300 million will expand Octopus's tech innovation and energy retail hub in Tokyo, with plans to create 1,000 green jobs by 2027. The Tokyo hub plays a crucial role in developing features for Octopus's Kraken tech platform.
This expansion builds on Octopus's existing successful partnership with Japanese energy giant Tokyo Gas, established in 2021. Japan is now Octopus's second-largest market after the UK, with nearly 200,000 retail customers and rapid growth. The company's generation team also intends to raise £400 million from Asia-Pacific investors over five years to fund wind and solar farms in the UK.
Octopus Energy Generation has already invested in Yotsuya Capital, a Tokyo-based solar developer, marking its first foray into the Asian renewables market. This initial investment aims to enable Yotsuya Capital to develop 250 MW of new solar farms in Japan over the next five years, generating enough green power for approximately 100,000 homes and avoiding 140,000 tonnes of CO2 annually. Japan aims to nearly double its renewable energy share to 38% by 2030, with an estimated $147 billion investment needed in renewables and storage.
British Ambassador to Japan, Julia Longbottom, welcomed Octopus Energy's investment as a strategic move and a vote of confidence in Japan's renewable energy potential. Greg Jackson, Founder of Octopus Energy Group, highlighted the importance of international cooperation in the energy transition and the strengthening partnership with Tokyo Gas. Hajime Nakamura, CEO of Octopus Energy in Japan, expressed excitement about the investment's potential to boost renewable energy expansion in the Asia-Pacific region.