Octopus Energy Group, a pioneer in energy technology, and Sterlite Power, a major Indian power transmission company, have signed a memorandum of understanding (MoU) to help decarbonize Indian industry and offer cheaper green power to customers worldwide.
The MoU, signed at COP26, will see the two companies explore several joint retail ventures. It is the first UK-India energy partnership since Green Grids was announced by UK Prime Minister Boris Johnson and Indian Prime Minister Narendra Modi at COP26 in November 2021.
The collaboration will seek to leverage Sterlite Power’s transmission capacity in the U.K. to add competition to the incumbent grid monopoly. Sterlite Power has been working in India to unleash market forces in the transmission sector to make India’s power grid more competitive and cost-effective. Since then, the industry has been able to manage power grids much more effectively, resulting in cost savings of up to 40% compared to older approaches.
Sterlite Power and Octopus are working together to create renewable energy generation and storage facilities in India and to deliver low-cost renewable energy to large industrial and commercial consumers. Once the necessary regulations are in place, the companies plan to offer this low-cost green power to residential customers as well.
Due to its ongoing industrial development, India is currently the third largest CO2 emitter in the world, producing about 2.6 billion tons of CO2 annually. The initiatives to be developed by Octopus and Sterlite Power will help reduce the country’s need for coal and natural gas, dramatically reduce energy consumption, and lower consumer costs through the use of technology.
The partnership highlights the global development of Octopus Energy Group, which has expanded into 13 countries in just five years and could soon include the launch of a retail energy business in India.
Octopus Energy Group is the fastest-growing U.K. energy company, with 3.1 million customers since its founding in 2016, and a success built on Kraken, its unique energy technology platform that delivers operational efficiency and exceptional customer service while creating a greener grid by unlocking smart pricing. To support its rapid development, the company recently received $600 million in capital from Generation Investment Management and $300 million from Canadian Pension Plan Investments. Octopus is now worth more than $5 billion and rivals the valuations of many long-established oil companies.
Sterlite Power is a major developer and provider of private sector power transmission infrastructure solutions in India and Brazil. The group focuses its efforts on integrating renewable energy into the grid.
“Through this collaboration with Sterlite Power, we will be able to offer greener, cheaper options to consumers in the UK and India, and even help India with its decarbonization goals by relentlessly reducing emissions from large industrial companies in India,” said Greg Jackson, CEO and founder of Octopus Energy Group. “The transition to a smart green energy system has been delayed by cumbersome grid systems designed to run a few hundred power plants.” These systems are not capable of managing millions of electric vehicles, heat pumps, solar panels and batteries all connected to the grid at the same time. What’s needed is a smart grid that balances renewables with energy demand while reducing costs. Sterlite Power’s thought leadership and experience in this area will be of great benefit to the UK’s future green grid.”