ZOE and Octopus Energy sign July 10 MOU to explore China VPP venture

The proposed partnership would combine ZOE's provincial virtual power plant operations in China with Octopus Energy's algorithms and international operating experience to build a smart energy platform tailored to domestic grid rules.

Summary

Shanghai ZOE Energy Storage and Octopus Energy signed a Strategic Cooperation Memorandum of Understanding on July 10, 2026 at Octopus Energy's UK headquarters, outlining plans for a broader co-operation agreement and a possible joint venture in China focused on smart energy and virtual power plant (VPP) operations. The partners said the project would combine ZOE's domestic licensing, deployment and operating capabilities with Octopus Energy's digital energy systems, including AI forecasting, dynamic pricing and cloud-edge dispatch tools, to create a one-stop intelligent VPP platform for the Chinese market. The proposed system is intended to aggregate commercial and industrial users, industrial parks, distributed PV, energy storage and EV charging infrastructure, with the aim of improving returns on distributed assets, balancing renewable power variability and supporting China's dual-carbon goals.

Terms & Concepts
  • virtual power plant (VPP): A system that coordinates distributed energy resources as one power network asset.
  • distributed PV: Solar power systems installed close to where electricity is used.
  • dynamic pricing: Power pricing that changes with market conditions or grid demand.