Octopus Energy has added Spain as its eleventh country of operation, paying undisclosed millions for start-up Umeme.
Under the operational name of Octopus Energy Spain, from the acquiree’s Valencia base the generator-retailer will aim by 2027 to secure one million Spanish accounts for pure renewables. The firm has committed up to £60 million to expanding its acquiree.
Spain attracts Octopus as the first overseas market where it can replicate its UK business model of integrating generation into direct retailing. The firm is already managing projects there through its recently established production arm.
Renewables last year made up 44% of all Spain’s electricity, and developments in solar and wind continue to proliferate. The country is also one of Europe’s hottest for Power Purchase Agreements (PPAs); prices have dropped further than in any other European country in 2021, says Octopus.
Umeme was launched in 2019. It now serves almost 5,000 domestic and business customers across the country.
Octopus Energy claims to be Britain’s fastest growing private company, signing up 2.4m customers in five years since launch. Founder and CEO Greg Jackson enthused about Umeme’s entrepreneurial spirit and tech-led approach, “very rare”, he said, in the energy sector.
“Our targets for Spain may be high, but I have no doubt that we will see a similar growth trajectory in Spain as we did in our other locations”, said Jackson.
The firm says its German customer base has doubled since January. US customer numbers have risen by a factor of five.
