Octopus Energy : pursuing environmental sustainability goals at the cost of profits? /
This case study explains the dilemma that London-based Octopus Energy Group (Octopus), a British renewable energy-only power retailer, was facing in focusing on growth versus profitability. Since Octopus worked with renewable energy only for retail, it disrupted the retail energy market in the UK, g...
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| Main Authors: | , |
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| Format: | Electronic eBook |
| Language: | English |
| Published: |
London :
SAGE Publications: SAGE Business Cases Originals,
2023.
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| Series: | SAGE business cases.
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| Subjects: | |
| Online Access: | CONNECT |
| Summary: | This case study explains the dilemma that London-based Octopus Energy Group (Octopus), a British renewable energy-only power retailer, was facing in focusing on growth versus profitability. Since Octopus worked with renewable energy only for retail, it disrupted the retail energy market in the UK, given that renewable energy was less expensive than natural gas or other fossil fuels. Under Greg Jackson's leadership, Octopus followed the "Energy as a Service" (EaaS) business model, intending to contribute to a "net-zero" climate goal. The EaaS business model engaged customers on the 3 Ds, i.e., decarbonization, decentralization, and digitization. Octopus developed Kraken, a digital technology platform where consumers could utilize smart tariffs, i.e., connect smart devices for efficient energy utilization and engage in peer-to-peer (P2P) renewable energy trading. As Octopus was expanding globally, it remained a loss-making company. Further, with increasing utility prices and a government cap on utility prices in the United Kingdom, several utility companies went bust. Funding was also becoming an issue as not many venture capitalists were patient with returns from investment in the clean technology sector. Even consumers were resistant to switching to smart devices for better energy utilization. Should Jackson follow environmental sustainability goals at the cost of profit? Can he pursue a more "responsible business" model? How can he combat challenges associated with EaaS to contribute to the fight against climate change? |
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| Physical Description: | 1 online resource : illustrations. |
| ISBN: | 9781529621686 : |
