How to grow a greener energy grid, with Octopus Energy’s Greg Jackson
Masters of Scale
Deep Dive
Why did Greg Jackson start Octopus Energy?
Jackson saw an opportunity to improve customer service in the energy sector, which was lagging due to outdated technology and a utility-focused mindset. He also cared deeply about the environment, having joined Greenpeace at 15, and saw energy as a $2 trillion sector ripe for digital transformation.
How does Octopus Energy foster innovation within its team?
Octopus Energy has built a culture where team members are encouraged to fail and learn from their mistakes. This approach allows for rapid horizontal and vertical scaling, with successful innovations being fed and unsuccessful ones starved.
What is Kraken, and how does it benefit Octopus Energy?
Kraken is an enterprise software platform designed to modernize the energy sector. It allows energy companies to move into the 21st century by standardizing processes and creating a super slick single data set. Octopus Energy uses Kraken to optimize operations and customer interactions.
How does Octopus Energy manage to offer cheaper energy to customers?
Octopus Energy offers cheaper energy on windy and sunny days by leveraging renewable sources. They also provide free energy during peak solar times and optimize electric vehicle charging schedules to minimize costs, making EV driving seven times cheaper than gasoline cars.
What challenges does Octopus Energy face in scaling its operations?
Octopus Energy faces the challenge of competing against entrenched, legacy energy companies with significant built-in advantages. They also need to navigate regulatory environments and ensure their technology can handle extreme weather events and grid strain.
How does Octopus Energy approach customer acquisition?
Octopus Energy initially street-fights for customers through door-to-door sales and telesales, ensuring a great customer experience to encourage referrals. This grassroots approach helped them scale to 7.1 million customers in the UK and nearly 2 million in other countries.
Why did Greg Jackson decide to license Kraken to competitors?
Jackson believed that if Octopus Energy proved the effectiveness of Kraken, other companies would eventually adopt similar technologies. By licensing Kraken, he ensures that competitors use his platform rather than funding alternatives, maintaining a competitive edge.
What is Greg Jackson's outlook on the future of energy in the U.S.?
Jackson is optimistic about the falling cost of renewables and the potential for smart tech to make energy systems more efficient. However, he is pessimistic about the slow transition due to vested interests and regulatory challenges that hinder rapid innovation and testing.
How does Octopus Energy ensure homes have no energy bills for 10 years?
Octopus Energy guarantees no energy bills by optimizing the use of solar panels, batteries, heat pumps, and smart hot water systems. They sell energy at low prices when it's abundant and buy it back at higher prices when it's scarce, balancing the grid and reducing costs.
What role does Kraken play in managing extreme weather conditions?
Kraken analyzes vast amounts of data to optimize energy use and storage, ensuring that homes with solar panels and batteries can still function during extreme weather. This includes selling energy back to the grid when prices are high, helping to balance demand and supply.
- Octopus Energy is a hyperscaling disruptor in the energy sector.
- The company's success is based on a culture that embraces failure and innovation.
- Octopus Energy operates in a competitive market in the UK, unlike the mostly regulated US market.
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