Octopus Energy buys AI-based energy optimization software firm

Summary

• The acquisition of Upside Energy is in line with the company’s ambition to set up a new tech hub in Manchester.
• Upside Energy is a cloud-based platform, which connects various clean energy sources and manages them real time to match real time demand and supply of electricity.
• The innovative solution provided by Upside Energy is one of the most potent new ideas in the field of energy usage.

In a big move in the renewable energy sector in the UK, Octopus Energy has acquired Upside Energy which provides cloud-based energy optimisation solutions, such as electric vehicles (EVs), heat pumps and batteries. The deal will further explore Octopus’s ambitions to set up a new tech hub in Manchester that is expected to transform the latter into the Silicon Valley of Energy of the UK.

The technology

The technology at the centre of this deal is an artificial intelligence (AI) based smart energy resource management system developed by Upside Energy. The system matches the demand for energy at a particular point in time with the available renewable resources and optimizes it with the user’s costs and carbon emission priorities. 

This system is being purported by its developers as being able to deliver a significant amount of energy and cost savings on existing grid and bring about significant carbon emission reductions. The system is capable of managing the energy demand for 100,000 devices in parallel. 

The renewable energy push

Renewable energy resources usage has seen a massive growth in the UK in the past two decades. Accentuated by the need to rapidly replace highly polluting fossil fuel-based energy resources, the country has made rapid strides to get more carbon neutral. Today more than one third of the electricity produced by the UK comes from renewable resources. 

Under the European Union Renewable Energy Directive, the country requires to achieve 20 per cent of its energy from renewable sources by 2020. This interim target is set out for each member nation. The UK met its fourth interim target in 2017-18 by a higher margin, when its average renewable energy production stood at 10.4 per cent in comparison to the requirement of 10.2 per cent. 

Also Read: Octopus Energy’s new data science and AI centre to create 1000 jobs

Top 5 renewable energy companies in UK

1. Green Energy (UK) plc – The company is a UK-based independent green energy company, which produces and distributes 100 per cent Ofgem certified renewable electricity and gas to customers in England, Wales and Scotland.

Green Energy UK is the only gas retailing company in the UK selling 100 per cent green gas. Also, it is the only private company in the UK to give free shares to its customers. Customers as shareholders can make suggestions and can attend its AGM and put questions to the board. The company has been crowned 'Winner of Winners' in the Cisco Customer Kings Competition in 2010.

The shares of the firm are not traded publicly as yet.

2. Eqtec plc (LON:EQT)- This company is a renewable energy company working in the field of waste to energy. The company is a beneficiary of the increased public awareness of the importance of environment protection and reducing carbon footprint. It has been receiving continued support from investors who invest in businesses providing environment protection technology solutions and green energy solutions. The company has also expanded its business and partnerships in the US and looking to suitably expand in Asia. 

Source- Thomson Reuters (six- months performance)

As on 04 November, the shares of Eqtec plc have been trading at GBX 0.46 per share (11.00 AM GMT+1) losing 1.29 per cent over the previous day’s close

3. Good Energy Group plc (LON:GOOD)– This is a UK-based Green energy company that generates and purchases renewable electricity and supplies green electricity and gas to homes and businesses throughout the United Kingdom. In 2008, Ethical Consumer magazine adjudged Good energy Plc as a Best Buy for green electricity. In 2018, the Office of Gas and Electricity Markets (Ofgem) had rewarded Good Energy for quality service it provided to FiT (feed-in tariff) consumers.

Source- Thomson Reuters (six- months performance)

As on 4 November, the shares of Good Energy Group plc have been trading at GBX 162.00 per share (8.03 AM GMT+1) losing 1.22 per cent over the previous day’s close

4. Active Energy Group Plc (LON:AEG) – This company is another UK-based renewable energy company specializing in the conversion of biomass to energy. The shares of the company are traded on the AIM market of the London Stock Exchange. The company’s business model to utilize abundantly available free energy resource is being well received by investors keen in the sector.

Source- Thomson Reuters (six- months performance)

As on 4 November, the shares of Active Energy Group Plc have been trading at GBX 0.43 per share (9.0 AM GMT+1) gaining 0.94 per cent over the previous day’s close

5. Ceres Power Holdings plc (LON:CWR)- The company is the developer of low-cost fuel cell technology. The company’s fuel cell technology has found many ++interested buyers both domestically as well as internationally. The company’s revenue has grown by 21 per cent during FY20 despite the impact of COVID- 19. Low cost SteelCell fuel cell technology is a potentially new field in clean energy technologies with many potential applications. Ceres Power has the potential to grow significantly both nationally and internationally. 

Source- Thomson Reuters (six- months performance)

As on 4 November, the shares of Ceres Power Holdings plc have been trading at GBX 745.00 per share (10.22 AM GMT+1) gaining 1.36 per cent over the previous day’s close.