Canada Pension Plan Investment Board (CPP Investments) has announced an equity investment of $300m in UK-based renewable energy group Octopus Energy Group under a long-term strategic partnership.
CPP Investment’s Sustainable Energies Group made the investment, which is intended to support Octopus Energy’s global expansion plan.
CPP Investments chief sustainability officer, senior managing director and global real assets head Deborah Orida said: “As a large, long-term investor, we are well-positioned to continue our leadership in investing in the whole economy evolution required by climate change.
“This investment and partnership with Octopus Energy, made through our Sustainable Energies Group, is a perfect example of how investors can work with leading tech-enabled energy companies to digitally disrupt the global energy system and support the evolution to a low-carbon world.”
Octopus plans to use the funding to improve its Kraken technology platform, which was created to support its own retail, generation and flexibility businesses.
Kraken has been licensed to Origin Energy, E.On UK, Good Energy, Hanwha and EDF, which together support 25 million accounts and 3GW of power capacity.
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In addition, the investment is expected to increase Octopus’ smart grid capabilities and green energy generation capacity.
It will also allow Octopus Energy Fan Club to install 30 additional wind turbines to deliver cheaper energy for communities.
The funding will bring Octopus Energy’s total valuation to almost $5bn.
Octopus Energy Group founder and CEO Greg Jackson said: “Octopus has pioneered the technology that allows citizens to benefit from cheaper energy as it gets greener.
“CPP Investments is a global force in energy investing, and their investment and partnership will enable us to build this truly innovative approach along the entire energy value chain.”
In March, Octopus Energy Group announced plans to acquire its sister company Octopus Renewables, adding £3.4bn worth of power capacity to its green energy asset portfolio.