Octopus Energy Generation plans to invest $20 billion in offshore wind by 2030, partnering with a Chinese firm to reduce energy costs and drive net zero in the UK. CGTN Europe spoke to Zoisa North-Bond, CEO of Octopus Energy Generation.
00:01The UK's Octopus Energy is one of Europe's largest investors in renewable power.
00:07Its generation arm recently announced plans to invest $20 billion into offshore wind by 2030
00:13and has teamed up with China's Mingyang, a world-leading wind turbine manufacturer,
00:18to supercharge the UK's green transition.
00:21I spoke to the CEO of Octopus Energy Generation, Zoe Sir North Bond.
00:26We have a partnership with Mingyang and that's because it's impossible to ignore the innovation that's coming out of that company.
00:34They're one of the top three turbine manufacturers in the world.
00:38They're producing turbines incredibly cost-effectively and incredibly quickly.
00:44When we look at the opportunity of net zero in the UK, we have this tremendous ability to be able to deploy wind over the next decade.
00:52But to do that, we've got to do it in a way that consumers will like.
00:56And actually, the way consumers will like net zero is to make sure that we keep the costs low and energy prices low.
01:02So, if we look at the unit economics of the way we build wind and we explore that with partners like Mingyang,
01:08we should have the ability to drastically reduce the cost of energy as it comes onto the grid and, of course, as consumers use it.
01:14So, it's really important.
01:15Music to many consumers ears.
01:17But what about other Chinese companies?
01:19Because they're not the only Chinese companies that you're collaborating with, aren't you?
01:23And not just in energy, but also in EVs.
01:25Absolutely.
01:26In EVs, also so important to driving down costs and creating an amazing renewable energy system.
01:33Because into the future, they'll have this ability to be able to store energy in their car batteries, which could power a household, for instance, for two days.
01:42So, the intermittency of things like solar and wind actually create this amazing opportunity whereby you can use it when it's really abundant very cheaply.
01:51But when it's not, you can store it in your car and then use it for your home.
01:54So, partnerships with companies like Geely and BYD, we found our consumers absolutely love because we're creating great products using energy tariffs.
02:05But combining that with vehicles, which are cutting edge and very, very innovative, along with things like charges that can be bidirectional.
02:14So, they can send signals to the grid, so back to the household and the car.
02:19And actually, the combination of those things is creating these amazing uses for renewable energy.
02:26And so, very, very super cheap products.
02:29And one of them actually just in June we launched with BYD called Powerpack.
02:34And customers can pay as little as £300 a month.
02:37And they don't have to pay to charge the car.
02:39That is covering the cost of the car, absolutely everything.
02:42Let's talk a little bit more about the push for wind turbines you were talking about in the UK.
02:48Look, China's been leading the way in solar and in wind.
02:51So, what is Octopus learning?
02:54And what can the UK learn from partnerships like yours?
02:58I think one of the biggest things that we can't possibly ignore is the speed that China is deploying renewables.
03:05And actually, almost this confidence to overbuild because I think it's already hit its 2030 target.
03:12And that's six years early.
03:14And actually, what you see in China compared to the UK is actually household energy prices are five times less than we pay in the UK.
03:22And it's because there hasn't been this fear of setting a direction, delivering on that direction and obviously then creating a whole economy around manufacturing turbines.
03:33Having all of that within China itself so that you get the cheapest unit economics as you're putting renewable generation together.
03:40So, I think there's a tremendous amount we can be standing back and learning.
03:43And one of those is to really have courage.
03:46So, if we're setting this direction, we're saying we want net zero by 2050, we have to actually now stand back, learn lessons from global partners that are already doing it and mobilize for it and create that opportunity within our countries ourselves.
04:01You talk about courage and being brave.
04:04And that's interesting because, of course, China is this industrial powerhouse, an important trade and investment partner for you.
04:11But some are wary, aren't they, of the potential complexities of geopolitics and supply chains.
04:20What's been the octopusology experience?
04:22I mean, you can't be ignorant to that.
04:25And I don't think any company is.
04:27But standing back, I mean, there are so many parallels where this has happened before.
04:31I mean, you look at mobile phones, you look at laptops where the actual device will be built within China, but the firmware and software is probably built within California.
04:40We can do exactly the same with wind turbines, solar panels, the way that you operate them to create safety, to create the comfort that actually places like Europe will need.
04:49And we don't see that as a software company being actually a massive hurdle.
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