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Octopus Energy is partnering with Severn Trent to develop renewable energy assets on land owned by the water company.
Octopus revealed today (1 September) that it had agreed to explore potential opportunities with Severn Trent to generate renewable power at the latter’s own sites and other third-party locations throughout its region.
The agreement gives Octopus around 180 hectares of land to explore for sites that are feasible for wind and solar asset development.
Octopus said the agreement was the first of its kind with a major utility supplier and added it will support Severn Trent’s goal of using 100 per cent renewable energy, achieving net-zero emissions and electrifying its entire vehicle fleet by 2030.
Speaking to Utility Week Zoisa North-Bond, chief executive of Octopus Energy Generation, the arm of the group which will manage the partnership, said the goal was to develop “direct wire” assets for Severn Trent sites, where power is generated close to where it is consumed.
She explained: “We would have a long-term power purchase agreement (PPA), with Severn Trent as the offtaker, and we would help develop the form of generation on the land and then hopefully where we can, look to supply that directly rather than going round the route of using the grid.”
North-Bond said the deal was not based around generating a set amount of MW, rather it was designed to assist with the water company’s 2030 climate goals.
She added: “It was one of the things that really attracted us to working with a company like Severn Trent. We have been given land in this way and for us it’s about making the most of what they have but doing it in a way that is really sympathetic to their neighbours and to other businesses that might be on that land as well.”
North-Bond confirmed Octopus had “one or two” similar deals in the pipeline, but declined to reveal further details.
“We would love to be able to work with other like-minded companies that maybe are landowners and are not only interested in being able to lower their own carbon emissions by switching to renewable energy and creating projects, but are also interested in doing that in a way that is sympathetic to households and communities as well,” she added.
Liv Garfield, Severn Trent chief executive, said: “This is an exciting new partnership which has the potential to revolutionise the way we generate renewable energy across our sites.
“We’re looking forward to working with Octopus Energy and benefiting from their expertise and experience, marking a major step forward on our journey to net zero.
“Signing this agreement couldn’t come at a better time, as we continue to emerge from the pandemic and help the country to build back greener and cleaner.”
In May, Severn Trent revealed plans to invest £565 million over the next four years to help the environment and improve infrastructure across the Midlands, as well as to create 2,500 new jobs.
It also announced earlier in the year that it has joined forces with Birmingham 2022 to help deliver the first ever carbon-neutral Commonwealth Games, where it will be responsible for delivering a series of initiatives that help offset the carbon generated by the games.
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