Octopus Energy, Britain’s largest electricity supplier by market share, has agreed to form a joint venture with China’s PCG Power to trade renewable electricity in China, the company said on Friday during UK Prime Minister Keir Starmer’s state visit to Beijing.
The deal marks Octopus Energy’s first move into the Chinese market and reflects Britain’s wider push to export clean-energy technology and deepen commercial ties with the world’s second-largest economy.
The partnership comes as Starmer seeks to reset relations with China, despite warnings from U.S. President Donald Trump over growing Western business engagement with Beijing.
The new venture, to be called Bitong Energy, will focus on buying and selling renewable power across China’s fast-growing clean-energy sector.
Bitong aims to trade up to 140 terawatt hours of renewable electricity annually by 2030, making it one of the largest power-trading platforms in the country.
Under the agreement, Octopus will provide its proprietary energy-trading software, while PCG Power will contribute its local market expertise and access to China’s renewable-energy network.
The Chinese renewable power market is expected to reach about 2.65 terawatts this year, underlining the scale of the opportunity the partners are targeting.
The joint venture is aiming for a valuation of more than £500 million within five years as demand for clean electricity continues to surge.
Bitong is also forecast to generate around £50 million in annual profit by 2030, according to the companies.
Half of those profits are expected to flow back to Britain, supporting the UK’s clean-energy industry and technology exports.