Octopus Energy and Masdar Sign Strategic MoU to Boost UK Grid Capacity and Scale Clean Energy Across Africa

Global clean energy player Octopus Energy has signed two strategic Memoranda of Understanding (MoUs) with Masdar—officially known as Abu Dhabi Future Energy Company PJSC—aimed at accelerating renewable energy deployment in the United Kingdom while scaling clean, reliable power solutions across Africa.

The agreements were signed during Abu Dhabi Sustainability Week and are designed to address grid constraints, fast-track renewable integration and respond to surging electricity demand driven by energy-intensive sectors such as artificial intelligence (AI) data centres.

Unlocking hidden grid capacity in the UK

In the UK, the partnership will focus on freeing up unused and underutilised capacity within existing distribution networks. The country is facing a severe shortage of grid connections, with many renewable energy projects delayed for years, while electricity demand continues to rise sharply due to the rapid expansion of AI-driven data centres.

Rather than relying solely on costly and time-consuming network upgrades, Octopus and Masdar plan to identify locations where latent grid capacity already exists. Around these points, they will develop smart local energy systems combining on-site solar generation, battery storage and flexible grid connections. This model is expected to significantly shorten connection times for data centres while easing congestion across the wider network.

Smart energy systems powered by Kraken

A central pillar of the UK initiative is Octopus’s proprietary Kraken technology. The platform will intelligently manage power flows between solar assets, battery storage and the grid, ensuring continuous supply for high-demand AI workloads.

By optimising when and how electricity is drawn from the grid, Kraken will also help lower energy costs by shifting consumption to off-peak periods, improving efficiency while maintaining reliability.

Scaling clean energy solutions across Africa

The second MoU focuses on expanding clean energy systems across Africa, leveraging the continent’s vast solar and wind resources. The partnership will target commercial and industrial customers through the development of distributed energy systems and local grids that can boost productivity, create jobs and support industrial growth.

Underinvestment in grid infrastructure, flexibility and system integration has long constrained African businesses. Masdar and Octopus aim to address these gaps by deploying modern, scalable energy solutions that deliver reliable power directly to enterprises and communities.

Initial efforts will concentrate on South Africa, with plans to expand into additional African markets in the near term.

Mobilising capital through Power Africa

Masdar will also pursue collaboration through its Power Africa Initiative, part of Global Citizen’s Scaling Up Renewables in Africa campaign. The initiative aims to catalyse US$450 million in clean energy investment, supporting grid infrastructure, distributed assets and technologies that deliver power directly to homes and businesses.

Leadership perspectives

Greg Jackson, Founder and CEO of Octopus Energy, said the partnership would accelerate projects that make energy cheaper and cleaner while unlocking new opportunities for businesses and industry.

Masdar CEO Mohamed Jameel Al Ramahi noted that the agreements support progress in the AI era while expanding access to clean, reliable energy across both the UK and Africa.