Britain’s largest energy supplier, Octopus Energy, has taken a bold leap into the global renewable energy arena by striking a landmark deal to supply power in China. The agreement, announced on January 31, 2026, during Prime Minister Keir Starmer’s official visit to Beijing, marks a significant expansion for Octopus into the world’s biggest clean energy market. The move is being hailed as a pivotal moment for both British and Chinese energy sectors, with major implications for the future of renewable power, international trade, and the delicate balance of economic and political relations between the UK and China.
At the heart of this new venture is a partnership between Octopus Energy and PCG Power, a state-backed Chinese utility. Together, they have formed a joint venture named Bitong Energy, which will combine Octopus’s world-leading energy trading software with PCG Power’s extensive local market expertise. According to Kursiv Uzbekistan, the aim is nothing short of ambitious: Bitong Energy is targeting the trading of up to 140 terawatt hours (TWh) of renewable power annually by 2030. To put that in perspective, that’s roughly equivalent to the UK’s entire current green energy output.
The financial stakes are equally impressive. Bitong Energy is expected to generate around £50 million in annual profits by the end of the decade, with approximately half of those earnings flowing back to the UK. The joint venture is also eyeing a valuation of more than £500 million within five years, signaling high hopes for sustained growth and profitability. As reported by Evening Standard, the business brings together “China’s leading and fastest-growing investor and solutions provider in the commercial and industrial renewable energy sector, with Octopus’ world-leading cutting-edge technology.”
Greg Jackson, founder and chief executive of Octopus Energy, has been vocal about the broader significance of the partnership. He stated, “China’s investments in scale and innovation have made solar, wind energy and batteries cheaper.” He went on to emphasize the opportunity this presents for the UK, saying, “Now there’s a huge opportunity for Britain to succeed as we build the solutions that use these products to cut the cost of electricity. Our partnership with PCG aims to do exactly that – exporting our world-class energy capabilities to grow our economies and speed up the shift to cheaper, cleaner, more secure energy.”
For PCG Power, the collaboration is equally momentous. Li Wenxuan, chairman and chief executive of PCG Power, described the partnership as a “defining milestone” for the company and underscored its commitment to pioneering the future of energy in China. “By integrating Octopus Energy’s world-class technology and algorithmic expertise with our profound local insights and trading capabilities, we will generate powerful synergies,” Li said, according to the Evening Standard.
The timing of the agreement is notable. It comes as the UK government, under the leadership of Prime Minister Keir Starmer, seeks to deepen economic ties with Beijing. This approach has not been without controversy. There are ongoing concerns over human rights issues in China, and the move has drawn warnings from the United States about the risks of closer engagement with Beijing. Former US President Donald Trump, in particular, has been critical of Western countries forging tighter links with China, citing security and geopolitical risks.
China’s dominance in global renewable hardware production is another factor driving both excitement and anxiety in the UK. The country is the undisputed leader in the manufacture of wind turbines, solar panels, and batteries. While this has helped drive down costs worldwide, it has also raised questions in Britain about energy security, supply chain resilience, and cyber risks. As The Telegraph reports, the UK’s reliance on China for net-zero technologies is a subject of heated debate, especially as Britain pushes to meet its ambitious climate goals.
The issue of technology deployment is also front and center. Octopus has signaled plans to use Chinese-made turbines in future British wind projects, specifically highlighting Shanghai-listed turbine manufacturer Ming Yang. The UK government is still deliberating whether Ming Yang should be allowed to build a wind turbine factory in Scotland. This decision is being closely watched, as Ming Yang already has partnerships with both Octopus and PCG Power. Octopus’s intention to deploy six gigawatts-worth of Ming Yang turbines into onshore wind farms across the UK underscores the scale of the potential collaboration.
Zoisa North-Bond, chief executive of Octopus Energy’s power generation arm, has been candid about the advantages of embracing Chinese technology. “We look to China and we see the sheer innovation and speed at which they have deployed wind models and how much they have invested in innovation — and you cannot ignore that,” she told the Financial Times earlier this week. Her comments reflect a pragmatic approach: while concerns about over-reliance and security risks are valid, the benefits of tapping into China’s manufacturing prowess and cost efficiencies are hard to dismiss.
For the British government, the Octopus-PCG deal is emblematic of a broader strategy to export UK energy technology and expertise overseas. As The Telegraph points out, the partnership reflects Britain’s push to leverage its technological edge in energy trading and management on the world stage. By marrying British software innovation with Chinese scale and manufacturing muscle, both countries stand to benefit economically and environmentally.
Yet, this growing interdependence is not without its critics. Some policymakers and analysts warn that deepening ties with China could leave the UK vulnerable to supply chain disruptions or cyber threats. The debate is likely to intensify as more British companies look to China for both technology and market access. The UK government’s pending decision on Ming Yang’s Scottish factory will be a key test of how it balances economic opportunity with national security concerns.
Despite these challenges, industry leaders remain optimistic about the potential of the Bitong Energy venture. The hope is that by harnessing the best of both British and Chinese capabilities, the partnership will accelerate the global transition to cleaner, more affordable energy. As Greg Jackson put it, “Our partnership with PCG aims to export our world-class energy capabilities to grow our economies and speed up the shift to cheaper, cleaner and more secure energy.”
As the world grapples with the twin imperatives of combating climate change and ensuring energy security, the Octopus-PCG deal offers a glimpse of how international collaboration might shape the next chapter of the global energy story. Whether this partnership will set a new standard for cross-border cooperation or spark further debate over strategic dependencies remains to be seen. For now, though, the eyes of the energy world are firmly fixed on Bitong Energy and the bold ambitions of its British and Chinese founders.