Masdar, Octopus expand clean energy in Africa

Masdar and Octopus Energy have entered into two new Memoranda of Understanding covering clean energy initiatives in the UK and Africa, marking an expansion of their collaboration across key global markets

Under the UK-focused agreement, Masdar and Octopus Energy will explore ways to unlock unused capacity within the country’s electricity distribution network to support the rapidly growing power needs of data centres. The agreements were formalised during Abu Dhabi Sustainability Week in the UAE.

The UK is currently experiencing severe constraints on grid connections, with renewable projects often facing multi-year delays before being connected. At the same time, electricity demand is rising sharply, driven in part by data centres that require large, reliable power supplies that can take years to secure.

The partnership proposes a new approach by identifying underutilised capacity within local distribution networks and building tailored energy systems around it. These systems will combine on-site solar generation, battery storage and flexible grid connections, enabling data centres to access power much faster while avoiding prolonged network upgrades.

Octopus Energy’s Kraken optimisation platform will play a central role by intelligently managing on-site generation, storage and grid electricity. This will ensure reliable power for energy-intensive AI workloads while reducing costs by shifting consumption to lower-priced periods.

The second MoU focuses on Africa, where Masdar and Octopus Energy will work together to scale clean energy solutions for commercial and industrial users. The collaboration aims to tap into Africa’s abundant solar and wind resources through local grids and distributed energy systems.

By addressing persistent gaps in grid investment, flexibility and system integration, the initiative seeks to support job creation, productivity and industrial development across the continent. Initial projects will be developed in South Africa, with plans to expand into additional African markets.

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.”

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.”

The partnership also aligns with Masdar’s Power Africa Initiative, part of Global Citizen’s Scaling Up Renewables in Africa campaign, which aims to mobilise US$450 million for clean energy investments. These include grid infrastructure, distributed assets and technologies designed to deliver clean power directly to homes and businesses while supporting economic growth.

Masdar and Octopus Energy already have an established relationship, having signed a framework agreement in 2023 that enabled Masdar to license Octopus’ Kraken platform to manage its battery storage portfolio in the UK.