Octopus Energy, a London-based startup that has been around for ten years now, is a major player in the global clean energy industry.
The company started out with just a few tech-savvy entrepreneurs, but now has thousands of staff and is valued at close to $10 billion.
Octopus, the UK’s largest energy provider, has surpassed British Gas in recent years. It now supplies green power to over 7 million UK households and almost 10 million worldwide.
It’s not only the electricity that makes it so successful, but the technology behind the machine.
Octopus Energy’s Kraken AI platform powers the future of energy
Kraken, Octopus’s proprietary AI platform and energy retailer business is its greatest asset.
Kraken, originally developed for Octopus to use itself as a service provider, was spun off into its own company in 2024. It now serves energy providers around the world with the technology backbone.
Kraken, with its suite of features ranging from grid balancing to renewable integration and customer management, is quickly becoming the digital infrastructure that energy companies look to upgrade.
Greg Jackson, Octopus’ co-founder, CEO and president, was clear in his intention: Octopus wasn’t created just to sell electric, but also to test Kraken on a real market.
Jackson stated in an article published by the Wall Street Journal that “We built Octopus to be a ‘demo’ client.”
Kraken, he said, “was the perfect opportunity to test this disruptive approach. It’s been so successful and we were able to implement it on a large scale.”
Kraken, with its ability to analyze and collect real-time data on energy and make personalized suggestions for charging electric vehicles and scheduling laundry services has become an essential tool in the fight for clean energy.
Kraken’s US deal is a milestone
Kraken has signed a major deal in the United States with National Grid, its biggest entry into that market.
Kraken, through this partnership, will be the AI billing and customer service platform for more than 6.5 millions residential, industrial, and commercial users across New York State and Massachusetts.
Amir Orad – CEO of Kraken – emphasized its importance and scale.
He said: “With National Grid as the leader, we are setting the scene for the future of energy – and it’s just the beginning.”
National Grid is the first US utility company to adopt Kraken’s platform in its entirety.
The decision to enter the American market was not taken lightly.
Orad admits the US energy industry is conservative and fragmented, with state-level regulations. It also has an aging infrastructure.
Kraken’s arrival is seen by many as a call to action in a market that’s hungry for innovation.
Orad, in a WSJ article, said that the US was probably the conservativest market for energy. However, he added that the market is also very big and needs a lot more help due to more regulations, distributed energy, and more data centres.
This will serve as a major wake-up call for the entire industry. It is time to take modernization seriously.
Octopus offers real-time insights into usage and incentive programs to promote energy efficient behaviour in Texas.
This company is looking to expand this technology-driven model of engagement across the country.
The UK’s “Zero Bills Project” is driving technology in the energy industry
In the UK, Octopus’s “Zero Bills” project was launched in 2013. It is a great example of its technology-driven strategy.
The offer was for a decade’s worth of energy free to homebuyers who purchased green technology such as solar panels, heat pumps and electric vehicle chargers.
Kraken played a key role in tracking energy flow and consumption, allowing for the creation of an ideal blueprint to create a household that is self-sustaining and energy efficient.
Kraken learned from these homes when to use appliances and to maximize household demand in order to match grid conditions.
You could use the insights gained to expand your model into other markets, such as in UK.
Clean energy investors buy in to the technology-led model
Investors see Octopus and Kraken as more than green energy. They are also catalysts of consumer empowerment and systemic changes.
Bill Rogers of the Canada Pension Plan Investment Board’s head of sustainable energys said that Octopus was not only unique in its retail offerings, but also for the way it allowed customers to participate with the energy transformation.
In the WSJ article, he stated that “We have identified Octopus to be a leader when it comes to helping consumers change their behaviour towards cleaner energy usage. This is a crucial but often neglected part of decarbonizing our energy systems.”
Frank Calabria, CEO of Origin Energy in Australia, also echoed this sentiment and cited Kraken as a key player in the digital transformation within his company.
Origin holds 22,7% of both Octopus & Kraken.
CalPERS, Generation Investment Management (chaired by Al Gore), Tokyo Gas, and the California Public Employees’ Retirement System are also notable investors.
Plan to serve 100 million global customers by 2027
France, Italy, and Japan are all on the radar of the company after it has already made a move into the US.
Octopuses and Krakens have also found partners in China.
Jackson spoke recently at the Sino-UK Entrepreneur Forum, in London. He highlighted collaborations with Chinese companies like BYD or Envision.
He said that his experience of Chinese companies was they are fast-moving and ambitious. Envision had promised to complete a project in three months, which would normally have taken many years.
Jackson applauded China’s vision for the future in terms of accelerating energy transition.
While the world pauses, China moves faster – and it will reap the rewards. “We want to bring those benefits to other countries through partnerships.”
Kraken has a contract to handle 70 million clients globally. Plans are to increase this number to 100 million in 2027.
Jackson thinks that even this number may eventually reach one billion.
Kraken’s rapid growth, increasing investor confidence, and technological prowess may make this ambition not only feasible, but inevitable.
The post Octopus Energy’s Kraken Platform: How it uses AI to expand globally may change as new information becomes available.
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