#Japan #Renewable Energy #Gunma #Octopus Energy #Gunma Model

Octopus Energy's Remarkable Rise in Japan's Energy Sector

In a remarkable achievement, Octopus Energy has recorded an astounding growth rate of 1137% since 2022, marking it as the top performer among the 40 largest power companies in Japan. This surge in growth is largely attributed to the company's proactive engagement with local renewable energy initiatives, particularly through its participation in Gunma Prefecture's 'Local Production for Local Consumption' (Gunma Model) Power Purchase Agreement (PPA).

As a result of the company's efforts, Octopus Energy has once again been selected as a power supplier for the third phase of the Gunma Model, which is set to commence in April 2024. This partnership will last for three years, during which the company is expected to supply around 156GWh (155,554,824 kWh) of renewable energy, significantly impacting business activities within Gunma Prefecture.

The Gunma Model Explained

The Gunma Model utilizes electricity generated from the prefecture's hydro power stations, prioritizing the supply of locally-produced renewable energy to businesses within the region. This innovative approach not only champions sustainable energy practices but also contributes to the economic stability of the area, fostering a circular economy and ensuring reliable energy supply.

The agreement for the third phase underscores Octopus Energy's commitment to long-term collaborations with local governments. The anticipated annual procurement volume for this phase is around 70 million kWh, further solidifying the critical role that municipal collaboration plays in the company's renewable energy sourcing strategy.

Supporting Local Economy and Energy Security

Through the Local Production for Local Consumption model, Octopus Energy aims to contribute towards achieving a decarbonized society, all while enhancing the stability of energy supplies and fueling regional economic growth. In addition to its efforts in Gunma, the company is also focused on expanding renewable energy supplies to municipalities in Ibaraki Prefecture, pushing for a wider application of community-based energy models.

The commitment to utilize local resources is evident in the wealth of partnerships the company has established. Energy will be supplied to seven different clients across eleven locations, including notable organizations such as Nippon Campack Co., Ltd., Kanto Denka Kogyo Co., Ltd., and Gunma Bank, among others. This extensive network of clients only serves to illustrate Octopus Energy's broad impact on the local economy.

Commitment to Sustainable Growth

Daisaku Kaneko, CFO and Head of Procurement at Octopus Energy, expressed his gratitude for the opportunity to supply energy under the Gunma Model once again. "We are honored to be selected as the power supplier for Gunma Prefecture's Local Production for Local Consumption program. Our mission at Octopus Energy has always been to ensure stable long-term procurement of renewable energy, balancing cost competitiveness with environmental value. By integrating Gunma's hydroelectric power into our supply portfolio, we are actively building a robust, sustainable supply system," said Kaneko.

Moreover, Kaneko highlighted the importance of their work in providing renewable energy directly to businesses stationed in Gunma, describing it as a core model for the company's expansion.

About Octopus Energy

Founded in the UK and having started operations in 2016, Octopus Energy aims to revolutionize how people experience electricity by harnessing technology to supply green energy at affordable rates. In just under a decade, they've managed to deliver renewable energy to around 10 million households worldwide. Today, their operations span multiple countries including the UK, Germany, New Zealand, the US, Spain, Italy, France, and Japan.

Entering the Japanese market in 2021 through a joint venture with Tokyo Gas, Octopus Energy is experiencing rapid growth. In just four years, they surpassed 500,000 contracts, with 86% of customers reporting a decrease in their electricity bills. Furthermore, they have received an impressive 4.4-star rating on Google reviews, underlining the customer-centric design of their services.

Visit their official website Octopus Energy Japan or their official blog to learn more about their initiatives.