Octopus Energy, the UK’s largest energy supplier, has announced its first technology investment focused on Africa, marking a milestone in the company’s global expansion strategy. The London-based firm has acquired a 10% stake in Mopo, a startup that rents out solar-powered portable batteries to customers in Nigeria, the Democratic Republic of Congo, Sierra Leone, and Liberia. Though the investment sum remains undisclosed, the move underlines Octopus’ growing commitment to delivering clean energy solutions in underserved regions.
Backing Mopo’s Decentralised Solar Battery Model
Mopo, founded in 2017 and headquartered in the UK, is addressing energy poverty in parts of West and Central Africa through a decentralized distribution model. The startup provides portable solar batteries to communities with limited or no access to reliable electricity, offering an affordable alternative to fossil fuel-based power. Octopus CEO Greg Jackson highlighted the importance of leapfrogging traditional energy sources, stating that the investment supports the region’s shift toward renewable electrification.
Building on Previous African Infrastructure Projects
While the Mopo deal marks Octopus Energy’s first technology-focused investment on the continent, the company has already been active in African infrastructure. In 2023, it partnered to develop a wind farm in Sierra Leone, reinforcing its clean energy ambitions. Octopus has also supported Xlinks, a UK company developing a large-scale solar power transmission project from Morocco to the UK, illustrating its commitment to cross-border renewable energy innovation.
Global Reach Through Retail and Software
Octopus Energy’s international footprint extends far beyond the UK, with active retail energy operations in eight countries, including the United States, Germany, Australia, and Japan. Its software platform Kraken, which manages utility infrastructure and customer operations, is a cornerstone of its expansion strategy and serves clients globally. This dual approach—combining retail operations with tech licensing—has helped Octopus grow rapidly in both established and emerging markets.
A Deliberate and Diversified Investment Strategy
The investment in Mopo was made directly from Octopus’ balance sheet, similar to the firm’s approach with Xlinks. The company’s strategy team, comprising four members, oversees both acquisitions and equity stakes, balancing financial returns with strategic alignment. Octopus also deploys capital through its investment arm, Octopus Energy Generation, which manages institutional funds from pension funds, insurance companies, and sovereign wealth vehicles.
Expanding Through Energy and Software Acquisitions
Beyond direct investments, Octopus has used acquisitions to drive its global growth. It has purchased nine energy companies as part of its market entry strategy in new geographies, often turning acquisitions into launchpads for broader operations. In the technology space, five software firms have been integrated into its Kraken ecosystem, enhancing the platform’s capabilities and value proposition for external clients.
Combining Capital with Capability
Hamish Lazell, strategy director at Octopus Energy, emphasized that the company’s investments are not just about market presence but also about securing valuable technological expertise. By supporting startups like Mopo, Octopus gains insight into innovative business models that can be scaled globally or integrated into its own operations. This approach of pairing capital with capability underlines Octopus’ goal of becoming a diversified clean energy and technology leader.
Octopus Energy’s stake in Mopo is more than a financial move—it represents a forward-looking strategy to support scalable, clean energy technologies in regions that need them most. The investment aligns with the company’s mission to decarbonize the global energy system while creating commercial and social impact. As Octopus continues to blend infrastructure, technology, and strategic capital, it is shaping a model for the future of global energy.
Source : sifted.eu