Octopus Energy enters Spanish market

UK clean energy retailer Octopus Energy has entered the Spanish market as part of the company's efforts to expand its business across Europe.

Entrance into the Spanish market was marked by the acquisition of green energy start-up Umeme in a £60 million (€69.9 million) deal. This will allow Octopus Energy to use its new base in Valencia to expand its services across Europe and the Mediterranean. The London-based energy provider is currently active in 11 countries worldwide including Germany, Japan and the US.

Octopus says its plan is to acquire one million Spanish customers by 2027, who will be provided with 100% renewable energy using the company’s Kraken cloud-based technology platform. The utility also plans to have 100 million customers globally by then.

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The deal is the first time Octopus Energy has combined its renewable generation and supply businesses outside of the UK.

Octopus Energy says its Umeme acquisition will enable the company to “disrupt the Spanish market and drive customer service excellence”. 

Greg Jackson, the CEO of Octopus Energy, said: "We are impressed by Umeme’s entrepreneurial spirit and tech-led approach, which is very rare in the energy sector. Their team is a perfect fit for Octopus, and I am hugely excited to work with them to bring affordable green power and outstanding customer service to Spain.”

Since its launch in 2019, Umeme is using its green energy and customer service optimisation platform to serve some 5,000 customers in Spain. Octopus Energy currently has 2.4 million customers in the UK.

Read more: EU lays out "Fit for 55" goals to cut carbon emissions

Octopus Energy believes its presence in the Spanish market will assist the country to accelerate its energy transition.

Roberto Giner, Managing Director at Umeme, said: “Thankfully Spain is blessed with a lot of sun and strong winds. By joining Octopus, we can now help make the most of this renewable energy and speed up Spain’s transition to a fully green energy system.”

Up to 44% of Spain’s total energy in 2020 was sourced from clean resources. With the introduction of the Green Deal and the Fit for 55 package, in addition to existing renewables goals set by the government in Madrid, the country’s clean energy pipeline is expected to continue to grow steadily over the coming years.

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