Masdar and Octopus sign MoU to transform clean energy systems in UK and Africa

Abu Dhabi Future Energy (Masdar) is forging a partnership with Octopus Energy, the global energy tech disruptor, for initiatives that promise to change how energy is consumed in the UK and Africa.

The two companies will work together to free up hidden capacity across the UK’s distribution network to power the next generation of data centres.

Mohamed Jameel Al Ramahi, CEO of Masdar, said: “Masdar and Octopus Energy share a commitment to overcoming challenges, expanding access to renewable energy, and powering progress across the globe. Through these agreements, we continue to reimagine the potential of renewables in the AI era, while also bringing much-needed clean energy to communities and businesses across Africa.

“We look forward to extending our partnership with Octopus Energy and transforming the energy market in the UK and in Africa.”

The challenge in the UK

The UK is facing an unprecedented crunch on grid connections, with renewable energy projects often waiting years to be plugged in. At the same time, electricity demand is soaring, with data centres requiring access to immense power sources, which can take years to secure.

Masdar and Octopus’ new model turns that challenge on its head by identifying pockets of available capacity in the UK’s distribution network and designing smart, local energy systems around them. By combining on-site solar, batteries and flexible grid connections, data centres will be able to unlock the power they need without lengthy network delays.

Octopus’ Kraken-powered optimisation technology will dynamically balance on-site generation, batteries and grid power to guarantee uptime for energy-hungry AI workloads – while driving costs down by shifting consumption to cheaper periods.

Masdar signed an agreement in 2023 to license Octopus’ Kraken technology platform to flexibly manage its battery storage portfolio in the UK.

The plan in Africa

Under the second MoU signed, Masdar and Octopus will partner to scale clean energy across Africa, harnessing the continent’s vast solar and wind resources for commercial and industrial (C&I) users.

The collaboration will deploy local grids and distributed energy systems that support jobs, productivity, and industrial growth, and address one of the biggest roadblocks facing African businesses – underinvestment in grids, flexibility, and system integration.

Masdar will collaborate with Octopus on scaling projects, initially in South Africa with plans to extend to other countries soon.

Greg Jackson, Founder and CEO of Octopus Energy, said: “This is a huge partnership and exactly what we need to move faster. Masdar is world-class in its vision and capabilities, and like us, they’re focused on finding ways for renewables to deliver real value to countries and citizens.

“This is about delivering projects that make energy cheaper, cleaner, and unlock real opportunities for businesses and industry.”

Masdar is targeting working with Octopus on its Power Africa Initiative which aims to catalyse $450 million in investments across a range of clean-energy solutions, including grids, distributed assets and technologies that deliver clean power directly to homes and businesses.