Octopus Energy’s Bold Solar Bet Transforms South Korea | Image Source: www.power-technology.com
SEOUL, South Korea, April 14, 2025 – In a significant movement that reflects the acceleration of the green transition in Asia, Octopus Energy Generation is committed to supporting the establishment of 20 solar farms throughout South Korea. Together with the local renewable energy company Skygreen Energy, this initiative marks a fundamental escalation of the renewable energy strategy of the UK’s Octopus Energy in Asia. This investment, facilitated by the Sky Fund (ORI SCSP), aims to provide 140 megawatts (MW) of clean electricity, which means that approximately 45,000 homes per year will be increased over the next two years.
According to the two companies’ statements, the company’s immediate approach is focused on the regions of the western centre of South Korea, a strategic location due to its high-energy industrial areas. Beyond the figures, the partnership reflects a broader ambition: to establish a long-term solar infrastructure capable of supporting South Korea’s national decarbonization goals. According to the Skygreen Roadmap, the project could reach 500 MW by introducing complementary technologies such as battery storage systems and terrestrial wind farms into the mixture.
The moment of this movement is critical. South Korea is currently based on coal for about 30% of its electricity generation, which is incompatible with global climate targets. However, the government has established a roadmap to triple the share of renewable energy in its energy mix, from 10% today to 33% in 2038. This ambitious transition highlights the urgency and the possibility of extending the solar energy infrastructure, especially when energy security, environmental objectives and industrial sustainability converge.
Why Octopus Energy bets a lot on South Korea?
The answer lies in a convincing combination of economy, politics and geography. South Korea is home to some of the world’s largest manufacturing conglomerates, and many are now under pressure to decarbonize operations. By providing direct solar power to these industrial giants, Octopus and Skygreen aim to fill a critical market gap. According to the CEO of Octopus Energy Generation Zoisa North-Bond, the company’s mission is clear:
“After our first steps in investing in Asian renewable energy in Japan, we are changing our last business in South Korea. With a great appetite for clean energy and a great dependence on fossil fuels, there is great potential to make a real impact.”
This partnership is distinguished by its strategic approach in small and medium-sized facilities. Instead of simply carrying out banking operations under megaprojects, which often face longer development times and greater obstacles that allow it, this approach allows for faster implementation and regional customisation. Each solar operation will be designed to serve specific industrial customers, offering a modular and scalable renewable solution that aligns with company decarbonization times.
What is Skygreen Energy’s vision for 500 MW?
Skygreen’s vision is bold but rooted in practice. Director General Jae Choi highlighted the dual mission of environmental administration and economic revitalization. In a country where energy independence and job creation are key strategic issues, solar energy serves as a bridge between sustainability and growth.
“South Korea’s renewable energy sector has tremendous potential to address the urgent challenges of climate change, while increasing energy independence, job creation and technological progress,” said Choi. “Skygreen will work closely with our team and talented stakeholders to build a cleaner and greener world for future generations
Skygreen also evaluates integration with BESS, which would allow a balance in the load and delivery of rounded energy, critical for industries that require uninterrupted energy supply. In addition, the company suggested exploring the wind on the ground and further diversifying its renewable energy portfolio. This hybridization strategy not only reduces the risk, but also ensures maximum land use and network efficiency.
What will be the impact of this South Korean industrial sector?
In short, in a significant way. Major industrial players, in particular manufacturing and technology players, are among the main electricity users in South Korea. They are also under increasing pressure – from investors, regulators and international customers – to reduce their carbon footprint. Offering a reliable supply of clean energy from local sources, Octopus and Skygreen provide these companies with a tangible path to decarbonization.
According to Renewable Energy Magazine, the clean energy produced will be sold directly to these industrial users, which is in line with the country’s growing interest in energy purchase agreements by companies. PPPs become an essential tool for companies seeking to meet their environmental management commitments without waiting for transitions across the network. Octopus-Skygreen is strategically positioned to take advantage of this trend, serving as a renewable intermediary between developers and professionals.
How does this fit into Octopus Energy’s Asian strategy?
This latter investment is part of a broader and more deliberate strategy to establish a renewable footprint in Asia. In 2022, Octopus Energy entered the Japanese market through a joint venture with Tokyo Gas, offering green energy to residential customers. Since then, the company has grown to supply 370,000 homes in Japan and has invested in Yotsuya Energy, a developer of solar farms. He also has a stake in Deep Wind Offshore, a wind farm developer with several projects in the coastal regions of South Korea.
We see a diverse approach: Octopus does not place all your bets on a single geography or technology. Instead, a multi-market and multi-technology portfolio balances risk and maximizes impact. The combination of solar, wind and battery investments allows the company to adapt to policy changes, supply chain challenges and energy needs more effectively than monolithic strategies.
What are the risks and opportunities?
Let us be honest: the transition from an energy system is not without friction. South Korea’s regulatory environment has always been conservative in terms of independent power production. However, reforms are under way to simplify authorisation procedures and encourage private sector investment in renewable energy sources. The network infrastructure remains a concern, particularly in rural areas, and transmission bottlenecks could hamper the speed of deployment.
But the positive side is huge. South Korea’s clean energy targets of 33% by 2038 are not just aspirations. They are currently supported by incentive frameworks, public financing mechanisms and an expanding national green finance market. With regard to energy technology, initiatives such as this partnership between Octopus and Skygreen help build investor confidence, demonstrating that foreign capital can align with national priorities in a mutually beneficial way.
In addition, localized employment, supply chain stimulation and knowledge transfer are important secondary benefits. The construction and maintenance of solar farms create jobs, while collaborations with local engineering companies and technology providers help build national capacity.
What’s next for South Korea’s renewable future?
If this project succeeds as planned, it could serve as a model for regional renewable energy development in Asia. It shows how international investment, as well as local experience, can unleash significant climate action. The modular nature of solar farms means that replication is not only possible but is encouraged.
More broadly, Octopus-Skygreen’s collaboration is a signal for other global energy players: South Korea is ready to increase renewable energy sources and the obstacles that once discouraged foreign participation are dismantled. If other companies follow the request, they will depend on project implementation, regulatory support and their ability to provide environmental and economic measures.
As Zoisa North-Bond says:
“We look forward to working with Skygreen to bring more solar energy to South Korean homes and businesses, leading to a cheaper and greener energy future for all.”
And this future could come faster than expected.
