Masdar and UK-based Octopus will also assess joint participation possibilities in renewable energy and explore collaborative opportunities in renewable generation, the two companies said on Wednesday.
The new deal comes shortly after Masdar committed to investing £1 billion ($1.26 billion) in UK battery storage in March, following its acquisition of London-based Arlington Energy in October 2022.
“Masdar and Octopus Energy share a common commitment to pioneering innovative clean energy solutions that disrupt and transform the energy market, and as we expand our presence in the UK energy sector, through our … investment in battery storage, Kraken will provide us with the flexibility we need to scale our business rapidly,” said Mohamed Al Ramahi, chief executive of Masdar.
“Kraken’s experience and expertise in battery storage asset management will help us to maximise the value of our investments and support the UK’s ambitious energy transition goals.”
Masdar is active in more than 40 countries and has invested in or committed investments to projects worth more than $30 billion.
The company aims to grow its capacity to at least 100 gigawatts of renewable energy by 2030.
Masdar has investments in renewable energy projects in the UK, including the 402-megawatt Dudgeon Offshore Wind Farm off the coast of Norfolk, and the 630MW London Array, one of the world’s largest wind farms.
Octopus Energy, which was valued at $5 billion after its last funding round in 2021, has grown on the back of its proprietary Kraken technology, a platform designed to promote smart grid use, increase efficiency and improve customer service.
Kraken, which uses algorithms to reduce suppliers’ and customers’ costs, has been licensed to more than 45 million accounts in 13 countries through deals with companies such as EDF Energy and Good Energy.
The company plans to expand into the Middle East, potentially setting up a technology centre in the region, its chief executive Greg Jackson told The National in January.
“I am seeing the Middle East, and particularly the UAE, as thought leaders in creating sustainable energy solutions,” he said at the time.
“We need to really start talking to potential partners about establishing a centre here to work together on the technologies that will help tackle climate change.”