Octopus Energy Group, a British renewable energy group specializing in sustainable energy, has acquired a 24% stake in renewables developer Exagen through their new Octopus Energy Development Partnership (OEDP) fund.

The deal includes an option to purchase a 500 MW / 1 GWh Battery Project located in the Midlands, England, which is currently in development and is scheduled to be operational by 2027.

As part of the agreement, OEDP has also acquired three solar farms with batteries on-site in the Midlands and Northeast of England, which Exagen is currently developing, with a combined capacity of approximately 400 MW.

Exagen has over 2 GW of solar and battery storage projects in their pipeline, which Octopus will be able to invest in once they’re ready to build.

“All of us at Exagen are thrilled by this ground-breaking deal with Octopus, which will support us in our mission to build smarter, flexible renewable generation projects across the grid, enabling communities access to cleaner, cheaper energy. I believe our commitment to our staff, our technology-focused approach to operations, and above all our passion for local communities and the environment has aligned us with the Octopus team, and we’re all looking forward to delivering on our promise together,” said Jeremy Littman, founder, and CEO of Exagen.

The €220 million (~$218 million) OEDP targets solar, onshore wind, and energy storage projects in the UK and the rest of Europe.

“This fund is helping to unlock huge amounts of new renewable energy across Europe, turbocharging the journey to greater energy security. The more new green power we can build, the faster we can reduce our dependence on gas imports and drive down energy bills for people in the UK and the rest of Europe,” comments Zoisa North-Bond, CEO of Octopus Energy Generation.

Last year, Octopus Energy Group announced a strategic partnership with Generation Investment Management, a firm founded in 2004 to invest in businesses that promote sustainability and the fight against climate change. The deal valued the United Kingdom’s leading electricity generator at $4 billion pre-deal and up to $4.6 billion post-deal.

According to Mercom’s 1H and Q2 2022 Funding and M&A Report for Storage, Grid & Efficiency. In 1H 2022, there were a total of 13 (six disclosed) Energy Storage M&A transactions compared to nine transactions (two undisclosed) in 1H 2021.