The chief executive of Octopus Energy has issued a stark warning that the United Kingdom faces the prospect of being "left behind" in the global clean energy transition unless it forges stronger collaborative ties with China on renewable technology. Greg Jackson emphasised that Britain cannot afford to ignore China's significant advancements in wind power and clean energy manufacturing, arguing that strategic partnership could deliver substantial benefits for UK consumers and industry.
A Strategic Partnership Announced
Jackson's comments follow the recent establishment of a joint venture between Octopus Energy and the Chinese group PCG Power, marking the British firm's first significant foray into the Chinese renewables market. The partnership was formally announced during a UK business delegation visit to China, which coincided with Prime Minister Keir Starmer's diplomatic trip. The collaboration is set to concentrate on trading and optimising renewable energy assets, representing a major strategic move for the rapidly expanding energy supplier.
Cost Advantages and Domestic Manufacturing
A central component of Octopus's strategy involves the planned deployment of Chinese-manufactured wind turbines across UK renewable energy projects. Jackson highlighted that this technology comes with a compelling cost advantage, being approximately 30 per cent cheaper than equivalent European-made turbines. The company's vision extends beyond mere importation, with ambitions to eventually establish domestic manufacturing capacity for this equipment within Britain.
"However you feel about China, it's the second-largest economy in the world," Jackson stated. "In many areas it's setting the global pace because of its investment in research and development and technology. If you don't look at how to work with them, then you get left behind." He contends that this approach could serve as a powerful catalyst for scaling up renewable energy infrastructure in the UK, while simultaneously creating thousands of high-skilled domestic jobs in manufacturing and engineering.
Balancing Opportunity with Security Concerns
The push for closer energy ties with China has inevitably raised questions regarding national security and supply chain dependence. Jackson acknowledged these valid concerns but advocated for a nuanced, managed approach rather than a blanket rejection of collaboration.
"Security has to be the number one priority," he affirmed, adding that any cooperation must proceed "intelligently and carefully with the appropriate security frameworks" in place. This perspective contrasts with more cautious viewpoints, such as that expressed by Charles Parton, a senior associate fellow at the Royal United Services Institute think tank, who warned in the aftermath of the PM's trip: "If your energy is dependent on China then you are at their mercy."
Broader Ambitions and Market Position
Octopus Energy is not new to Chinese partnerships, having already allied with Ming Yang Smart Energy, a Chinese wind turbine giant with its own ambitions to build manufacturing capacity in the United Kingdom. Jackson outlined the overarching aims of these collaborations: to reduce Britain's reliance on imported natural gas, lower wholesale electricity costs for consumers, and significantly improve the nation's overall energy resilience and security.
The company, which serves just under eight million customers across the UK, recently surpassed British Gas to become the country's largest household energy supplier. It also operates Kraken Technologies, an artificial intelligence energy platform utilised by utility companies worldwide, which has received government backing via the British Business Bank ahead of a planned spin-out.
The Race to Net Zero
Octopus hopes that Chinese turbine technology will begin operating in UK wind projects within the next two to three years. This timeline is critical as Britain accelerates its efforts to expand clean power generation capacity and meet its legally binding net zero emissions targets. Jackson's argument positions pragmatic international collaboration, particularly with a technological leader like China, as an essential component of a successful and cost-effective national energy transition, one that supports both economic growth and environmental goals.
