The firm specialising in sustainable energy announced the launch of its new fund for green energy on Wednesday, dubbed the Octopus Energy Development Partnership (OEDP). The €220million (£185million) fund is aimed at ramping up renewables to slash dependence on foreign gas imports and has a long-term goal of slashing bills. It is specifically focusing on solar, onshore wind and energy storage projects across Britain, as well as the rest of Europe.
The announcement comes as the fund struck a debut deal with renewables developer Exagen, in which the OEDP will take a 24 percent stake.
Exagen is currently building large-scale solar and battery facilities, teaming up with farmers, landowners and local communities on major projects to ramp up the UK’s energy security and slash bills.
And the deal gives the OEDP the option to buy one of the biggest batteries at 500 MW / 1GWh in the Midlands, which is set to come online by 2027.
Batteries are used to store cheap green energy when it is abundant and release it when it is needed to help balance the grid.
Jeremy Littman, founder and CEO of Exagen, said: “All of us at Exagen are thrilled by this ground-breaking deal with Octopus, which will support us in our mission to build smarter, flexible renewable generation projects across the grid, enabling communities access to cleaner, cheaper energy.
I believe our commitment to our staff, our technology-focused approach to operations, and above all our passion for local communities and the environment has aligned us with the Octopus team and we’re all looking forward to delivering on our promise together.”
This comes after Octopus last week unveiled a new tariff that can slash bills by £350 for thousands of Britons in the Halifax area of Yorkshire.
The “Fan Club” model works by providing Octopus customers with cheaper electricity if they live near wind turbines, which is now in effect in three locations in total, also including Weighton in East Yorkshire, and Caerphilly in South Wales.
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It comes as industry regulator Ofgem will announce the October price cap on Friday, which forecasters expect will reach around £3,500, threatening to push millions of households into fuel poverty.
Octopus boss Greg Jackson is reportedly backing a plan to freeze customer bills for two years.
The plan, which is also reportedly back by British gas and is being debated in the industry, aims to set up a multibillion-pound facility to spread the cost of an emergency funding package over a decade
Under the scheme, commercial banks would deposit cash into a state-backed fund for suppliers to draw on to meet the difference.
This would replace a rising price cap, which is currently at £1,971 but could reach an eye-watering £6,500 by April according to some forecasts.