Octopus Energy to create a virtual power plant in Texas

Renewable energy retailer Octopus Energy US is partnering with Enphase Energy, Inc., a supplier of microinverter-based solar and battery systems, to create a virtual power plant (VPP) in Texas.

With the partnership, Octopus Energy customers in the US will be able to integrate Enphase home solar and battery solutions in their energy plan in the hopes of accessing low-cost residential energy rates.

With Kraken Flex, Octopus Energy’s proprietary software platform for managing, controlling, and optimizing distributed energy resources (DERs), Octopus Energy plans to create a VPP with the Enphase home battery systems.

Octopus Energy will be bidding these DERs in the Electric Reliability Council of Texas (ERCOT) ancillary markets, considered a first of its kind for these assets.


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As part of the agreement, Octopus Energy will be able to flexibly control the customer’s battery to reduce usage when the grid is the most constrained. They will be able to optimise how a customer’s battery interacts with the electric grid through Intelligent Octopus, a smart device retail energy plan.

“We are pleased to partner with Octopus Energy to bring home solar and batteries to homeowners in Texas, helping them better manage their electricity costs and creating a more resilient energy system for everyone,” stated Dave Ranhoff, chief commercial officer at Enphase Energy.

Michael Lee, CEO of Octopus Energy US, commented that the partnership with Enphase Energy will be critical for driving the US’ energy transition.

In a press statement on the partnership, Lee stated the importance of load flexibility for grid management due to its value for high-renewable energy grids, where supply and demand prove a pressing issue.


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Octopus Energy and Enphase’s partnership comes as policymakers look to leverage emerging technologies to hasten the shift to renewables, as well as eliminate barriers to clean energy economic growth.

The partnership aims to enable customers to optimize their virtual power plant home energy system around easy participation in ancillary markets and demand response programs for immediate savings.

This is the latest move from Octopus Energy in its US market. Founded in the UK in 2015, the energy major expanded its offerings to the US in 2020.

Originally published at Smart Energy International.


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Author: Renewable Energy World