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London-based entech unicorn Octopus Energy enters Germany, aims to offer cheaper, greener power

Octopus Energy

A couple of weeks back, London-based Octopus Energy, an Entech pioneer, established its hub in Manchester with the acquisition of Upside Energy. And now, the company has expanded its operation in Germany with a mission to disrupt the market and deliver contract freedom and innovative tariffs for customers.

Enters German market

Named Octopus Energy Germany, the company is planning to target 1 million customers by 2024 and committed to fueling this rapid expansion with an initial investment of €80 million (approx £71.5 million) in the market. 

Initially, the company entered the German market with the acquisition of Munich-based energy startup 4hundred in September 2019. The move comes as a part of Octopus’s international expansion, following recent launches in the US and operations in Australia.

Making green energy revolution affordable

Launched in 2016 by Greg Jackson, James Eddison, and Stuart Jackson, Octopus Energy Group builds technology to make the green energy revolution affordable whilst transforming customer experiences. So far, the UK company has gained 1.7 million customers since the launch.

In April 2020, it became the UK’s latest tech ‘unicorn’, valued at €1.5 billion (approx £1.34 billion) after Australia’s leading energy company Origin Energy acquired a 20 percent stake for more than €330 million (approx £268 million).

Proprietary cloud-based energy technology platform

At the heart of Octopus’s success is Kraken, its proprietary cloud-based energy technology platform designed to drive the smart grid, giving customers access to cheaper electricity when more renewable energy is available. 

With this, Octopus wants to speed up the country’s transition to a greener, cheaper, and fairer energy system. As per the company’s claims, the energy prices will be set transparently, customers will have the freedom to switch whenever they want. 

Customers will also enjoy many of the perks that Octopus Energy provides in the UK, including a relentless focus on customer service excellence and innovative tariffs to make green energy cheap energy.

Octopus Energy CEO and founder Greg Jackson said: “It’s been a very exciting year in which we learned about the German market and welcomed 4hundred into the Octopus Energy family. Now we’re ready for our big launch, and I’m delighted that our German team, which already includes 30 brilliant minds, will lead our push into the market. Our office will be based in Germany’s tech hub Munich, close to leading companies in the automotive industry. That’s fantastic because like in the UK, we will soon introduce innovative electricity tariffs for new forms of energy consumption – and bespoke tariffs for EV drivers are right at the top of our list. At the same time, we will offer our customers the greatest possible flexibility and the same excellent customer service that our customers in the UK already enjoy.”

Andrew Mack, CEO of Octopus Energy Germany, said: “Germany took an early lead in the green energy transition, serving as a role model to many other countries around the world. But despite the impressive achievements in greening its power generation, Germany now has the highest prices for electricity in Europe – which is why customers are still reluctant to adopt clean technologies such as electric cars or heat pumps. Our tech-enabled tariffs will give German households and EV owners access to cheaper greener power, supporting the government in its efforts to supercharge the uptake of EVs and reach its 2030 climate goals. Combining our knowledge of the market and Octopus’ industry-leading tech platform, we’re confident that we can make a big green dent in the German energy sector in less than 4 years. Throw in contract freedom too and we’re confident we will have one million customers by 2024.”