Octopus Energy Group has announced a new joint venture with China’s PCG Power to trade renewable electricity in the world’s largest clean energy market, marking a significant expansion of UK energy technology into Asia.
The partnership was announced during the UK Prime Minister’s official visit to China, highlighting the growing role of energy technology and market reform in international trade discussions.
Trading renewable power in a rapidly changing market
The new company, Bitong Energy, will combine PCG Power’s experience in China’s commercial and industrial renewable energy sector with Octopus Energy’s trading and optimisation software.
China is rapidly reforming its electricity markets, with spot power trading — where electricity is bought and sold in near real time — becoming a central feature of grid operation. Government mandates require at least 10% of electricity to be traded through spot markets by the end of this year, as part of efforts to improve efficiency and integrate growing volumes of renewable generation.
Electricity demand in China is forecast to grow by around a third over the next five years, driven by industrial activity, electrification and digital infrastructure.
Scale and ambitions of the joint venture
Bitong Energy will launch initially in Guangdong province, China’s most advanced spot power market, before expanding into other regions as market access increases.
By 2030, the joint venture aims to trade up to 140 terawatt-hours of renewable electricity annually — a volume comparable to the UK’s current renewable power generation — reflecting the scale of China’s power system.
Alongside electricity trading, Octopus plans to deploy its software to optimise renewable and battery assets, supporting grid flexibility and more efficient use of clean energy.
Exporting UK energy technology
The deal underscores a growing trend in which UK energy firms export digital platforms and market expertise rather than physical infrastructure.
As renewable penetration increases globally, software capable of managing price volatility, flexibility and real-time optimisation is becoming a critical component of modern electricity systems.
Octopus Energy has previously partnered with utilities and developers in Europe, North America and Asia to deploy similar technology, particularly in markets undergoing liberalisation.
Energy transition and geopolitics
The joint venture reflects the strategic importance of energy markets in international relations, particularly as countries seek to balance energy security, affordability and decarbonisation.
China’s investments in renewable generation and storage have helped drive down global technology costs, while market reforms are increasingly focused on how that capacity is integrated and monetised.
For UK firms, participation in these markets offers opportunities to scale expertise developed domestically while contributing to the global energy transition.
As electricity systems worldwide become more complex and data-driven, partnerships focused on trading, optimisation and flexibility are expected to play an increasingly important role in shaping how clean energy is delivered at scale.
