Hoenergy has signed a strategic cooperation agreement with Octopus Energy, the UK-based European clean energy leader. The two companies will partner closely across energy storage equipment, digital energy technology and VPPs, combining their respective strengths in energy technology, market access, platforms and operations. Together, they aim to grow their presence in new energy markets in China and abroad, and to support the transition of power systems worldwide towards greater intelligence and lower carbon. Hoenergy’s global strategy partner, ARC Group, provided strategic advisory support for this collaboration.

Octopus Energy is a globally recognised clean energy technology company whose core business includes virtual power plant operations, green electricity retail and wholesale power trading. In just ten years, it has grown from a market newcomer into the UK’s largest energy supplier. Backed by a high-quality service model, cutting-edge technology and a global growth strategy, Octopus Energy Group now operates  in over 30 countries globally, with a business spanning the full value chain, from energy retail and renewable energy investment to project development and smart energy management. It serves more than 10 million customers worldwide, with its international customer base continuing to grow rapidly, and has built a mature, well-established global service network.

Hoenergy offers full-stack R&D and manufacturing capabilities for energy storage systems, underpinned by a proven digital storage technology platform. It is one of the few players in the industry to combine large-scale hardware manufacturing with in-house software and algorithm development, and its technology leadership has given it deep market insight and a strong base of high-quality industry customers. A software development subsidiary of Hoenergy has been appraised at CMMI Maturity Level 5. Hoenergy has built a complete digital energy storage ecosystem spanning products, solutions and services. It has been named a BNEF Tier 1 energy storage manufacturer on multiple consecutive occasions and rated a Grade A global energy storage system integrator by Wood Mackenzie, and is using digital technology to power the build-out of new-type power systems and the green, low-carbon energy transition.

Under the collaboration, Octopus Energy will leverage its global technology and platform capabilities to provide joint projects with energy market forecasting, asset optimisation strategies, software and trading optimisation services, as well as energy market product operations, giving projects the technical backbone to participate efficiently in power markets. Hoenergy, for its part, will bring its local strengths: years of industry experience and market knowledge in China, together with an extensive customer base and distribution network. This will streamline project delivery on the ground and help tailor the joint solutions to China’s power market rules and the needs of C&I customers.

The two companies will also pursue two-way commercial cooperation to jointly capture international opportunities. On one hand, Octopus Energy’s global customer network will help bring Hoenergy’s hardware and related optimisation services to overseas markets. On the other, the partners will explore deeper integration of their technology platforms, aligning Hoenergy’s proprietary EMS with Octopus Energy’s forecasting algorithms and trading strategies. This will sharpen the precision of energy management and strengthen market trading capabilities, enabling storage assets to trade efficiently in overseas power markets and aiming to improve their operational performance and asset value.

Looking ahead, Hoenergy and Octopus Energy will build on a deeply integrated model of “hardware manufacturing + software algorithms + global platform” to unlock value across the entire energy storage value chain and refine how storage assets are operated. By enhancing intelligent dispatch, market trading and asset value creation, the partnership aims maximise the full range of value streams from energy storage, including peak shaving, frequency regulation, demand response and power trading. This is intended to improve the profitability and operational efficiency of storage projects in China and overseas, build durable technological advantages, and support continued innovation in energy storage technology.

This strategic partnership brings together Octopus Energy’s world-leading energy platform and algorithms with Hoenergy’s proven hardware and software capabilities and local operating expertise, with the aim of realising synergies. As power market reform accelerates and renewables make up an ever-larger share of the grid, the two companies will work hand in hand to expand their global digital energy footprint and contribute to the high-quality development and green transition of power markets worldwide.

Guillaume de La Hosseraye, Partner M&A at ARC Group:

“Hoenergy, as a Chinese leader in Smart Energy Storage, has mandated ARC GROUP to identfiy a long term partner for their European expansion. We are therefore very pleased for Hoenergy to establish this strategic collaboration with Octopus Energy Group, a UK based global leader in Energy retail and flexibility. This cooperation is an important milestone in Hoenergy oversea  expansion by selling its technology in joint projects in Europe, as well as for Octopus Group to team up with a strong local partner for the China market.  It demonstrates ARC Group’s ability to identify & secure cross-border partnership and synergies for our clients in the energy sector.”

Energy Transition and Cross Border Cooperation

International expansion in the new energy sector increasingly brings together technology, platforms and operating capabilities alongside products. ARC Group draws on its global capitalization and strategic advisory capabilities and international network to help businesses identify complementary strengths, establish cross-border partnerships and translate international strategies into commercial opportunities.

About ARC Group

ARC Group is a global investment bank and management consultancy rooted in Asia. Its services span capital markets, mergers and acquisitions, financing and management consulting. Drawing on its cross-border expertise and international network, ARC Group provides financial and strategic advice to businesses, investors and partners, connecting capital, industry resources and opportunities across markets to support growth and long-term value.

For more information or any questions, please contact:

Guillaume de La Hosseraye
M&A Partner
[email protected]