Kathmandu— A joint venture between British energy tech company Octopus Energy Group Limited and China's PCG Power, Guangzhou Bitong Energy Technology Co., Ltd., is rapidly expanding into China’s green power market. Within months of launching operations in May, the company has signed electricity trading contracts exceeding one billion kilowatt-hours (kWh), primarily serving commercial and industrial clients in sectors such as biopharmaceuticals, smart manufacturing, and high-end real estate.

Smart Algorithms Drive Energy Efficiency

The joint venture uses advanced digital tools and algorithmic models to optimize electricity costs for its clients while increasing the share of renewables in their energy mix. Celyn Cei Simmonds, head of trading at Octopus Energy, explained that smart algorithms are used to match demand with green generation, reducing costs for both commercial customers and grid operators.

"Our approach is simple: we use smart algorithms to match demand with green generation, taking cost out of the energy system for commercial customers and grid operators alike," Simmonds said at a recent event in Guangdong.

Guangdong as an Innovation Hub

The joint venture chose to anchor its China operations in Guangdong due to the province's immense scale and pioneering market reforms. Peak power demand in Guangdong alone is nearly four times larger than that of the entire United Kingdom, making it a prime location for testing smart energy technology.

"Guangdong is a true economic powerhouse," Simmonds noted. "Peak power demand in Guangdong alone is nearly four times larger than the peak demand of the entire United Kingdom."

Strategic Partnership and Market Expansion

The partnership between Octopus Energy and PCG Power combines international tech expertise with deep local market knowledge. While Octopus Energy brings its proprietary Kraken platform and global electricity trading experience, PCG Power provides a domestic client network and localized algorithms.

"Our mission is to deliver more cost-effective, intelligent, and reliable energy solutions to our commercial and industrial clients," said Li Wenxuan, chairman and CEO of PCG Power. "We aim to foster a dynamic domestic electricity market and accelerate the broader green transition."

Future Outlook and Targets

Looking ahead, Octopus Energy has set ambitious targets for the joint venture. By 2030, it aims to trade 140 terawatt-hours (TWh) of renewable electricity annually, generating an estimated annual profit of 50 million pounds ($67.34 million).

"China is leading the world in building clean energy infrastructure," Simmonds said. "With the incredible influx of wind and solar comes a new challenge."

(With inputs from Xinhua)

Originally published on abcnews.com.np.