Octopus Energy Group has announced a joint venture (JV) with PCG Power to trade renewable electricity in China. The JV will operate under the name Bitong Energy and will focus on trading green electricity in China’s spot power markets, where electricity is bought and sold in real time. The JV will begin operations in Guangdong province and will expand to other regions as additional markets open.
By 2030, Bitong Energy aims to trade up to 140 TWh of renewable electricity annually. This level of activity is projected to generate annual profits of about £50 million, with approximately half expected to flow back to the UK. Moreover, within five years, the JV is targeting a valuation of more than £500 billion. Additionally, alongside power trading, Octopus Energy Group plans to deploy its software platform to improve the performance and value of renewable energy and battery assets across China.
Bitong Energy brings together PCG Power’s experience in China’s commercial and industrial renewable energy segment with Octopus Energy Group’s energy trading and optimisation technology. China’s electricity demand is projected to increase by around one third over the next five years. Furthermore, government policy mandates require at least 10 per cent of electricity to be traded on spot markets by the end of 2026.
