Octopus Energy Spins Off Kraken Technology Platform to Accelerate Global Expansion
Octopus Energy Group's spin-off of its Kraken technology platform represents a strategic move to accelerate global expansion and innovation in utility digitalization, with implications for energy market transformation worldwide.
Octopus Energy Group announced the spin-off of its technology company Kraken, a strategic move designed to accelerate the platform's global expansion. The AI-powered platform currently serves over 70 million household and business accounts worldwide and processes 15 billion new data points daily, making it the world's most advanced data-driven operating system for utilities.
The spin-off marks a significant milestone as Kraken reaches $500 million in committed annual revenue through licensing agreements with major energy companies including EDF, E.ON Next, National Grid US, Origin Energy, Plenitude, and Tokyo Gas. This represents a quadrupling of contracted revenue within just three years, demonstrating the platform's rapid growth and market acceptance.
Greg Jackson, Founder of Octopus Energy Group, stated that Kraken was created as a global platform to transform utilities and deliver the innovation, service, and value that customers deserve. He expressed pride in the business's success and set ambitious goals for the future, including serving a billion people over the next decade. The platform's technology has been instrumental in Octopus Energy's rise to become the UK's largest energy supplier, serving over 7.7 million households.
Amir Orad, CEO of Kraken, emphasized that the spin-off provides more freedom to invest, expand, and serve utility clients equally while maintaining structural clarity for customers, investors, and partners. The company will continue pushing innovation in cloud technology, advancing utility-grade AI, and harnessing vast amounts of energy and grid data. Kraken's transformation of utilities worldwide focuses on reducing operational costs, improving customer service, and increasing flexibility and innovation.
Recent developments include a breakthrough solution for serving commercial and industrial customers and signing its first fully integrated US utility client with National Grid. The company also manages over 2GW of power from EVs, home batteries, and heat pumps, positioning it as a global leader in residential flexibility. Kraken's cloud-based architecture has proven adaptable and scalable, enabling successful expansion into water and other verticals. More information about the platform's capabilities can be found at https://kraken.tech.
The spin-off enables Kraken to fast-track investments into technology, expand into new energy markets and regions, and drive innovation while building on its utility roots. This move comes as Octopus Energy Group operates in 27 countries with a £7 billion renewables portfolio and thriving EV leasing, heat pump, and solar businesses. The separation allows both entities to focus on their core competencies while continuing to collaborate on driving the energy transition forward.