Climate Action

Octopus Energy enters USA with acquisition of startup Evolve Energy

Octopus Energy has announced the acquisition of Silicon Valley-based startup Evolve Energy in a move that will shake up the US energy market.

  • 29 September 2020
  • Rachel Cooper

Octopus Energy has announced the acquisition of Silicon Valley-based startup Evolve Energy in a move that will shake up the US energy market.

The $5 million deal is the pivotal element in Octopus’s $100 million investment in the US market.

Starting in Texas, Octopus Energy US, as the new business will be known, is targeting 25 million US energy accounts on its technology platform by 2027. They will make up a quarter of the business’s global target of 100 million energy accounts in the same time frame.

The renewable energy supplier is the UK’s fastest growing private company, having gained 1.7 million customers since launching four years ago.

In April 2020, Octopus became the country’s latest tech ‘unicorn’, valued at close to $2 billion after Australia’s leading energy company Origin Energy acquired a 20 percent stake for nearly $400 million.

At the heart of Octopus’s success is Kraken, its proprietary cloud-based energy technology (EnTech) platform. The scalable platform provides industry leading operational efficiency and outstanding service quality. But most importantly, Kraken is designed to drive the smart grid, giving customers access to cheaper electricity when renewable energy is abundant.

The new partnership with Evolve Energy will enable the company to bring this innovation to the US, speeding up the country’s transition to a cheaper, greener energy system.

Evolve Energy is a Houston and Silicon Valley-based energy startup that uses AI and machine learning to optimise energy usage, providing customers with the best energy prices for renewable power.

Octopus Energy CEO and founder Greg Jackson said: “We knew that Evolve was a leading innovative energy firm that was doing great things with real-time energy, connected home devices, and renewables. We’re excited to be working with Michael and the Evolve team to bring futuristic technology, green energy and excellent customer service to Texas.”

“Octopus Energy is inspirational in growing a customer base of over 1 million households in just four years. It has done so while also achieving customer satisfaction scores similar to Netflix and Amazon. It matches our aspiration for innovation and we’re thrilled to be part of the Octopus family,” said Lee. “The US energy market is rapidly moving towards ultra-low cost renewable energy and is prime for a true digital transformation.”