‘It’s only when you see 49-ton trucks in China running on batteries that you realize how serious electrification is’: Octopus Energy CEO Greg Jackson on Europe’s incumbency problem

Greg Jackson, CEO of Octopus Energy, the UK's largest energy provider, emphasized the significance of electrification during a recent interview. He highlighted that the situation in China, where 49-ton trucks are running on batteries, underscores the seriousness of this shift. Jackson observed that Europe faces an incumbency problem, which inhibits growth and innovation.

He pointed out that China and the Gulf regions are rapidly delivering the new world, unlike Europe, where European governments and consumers want electric vehicles, but European car companies struggle to remain competitive. According to the latest data from the European Automobile Manufacturers' Association, the EV market share in Europe has increased from 9.6% to 14.6% due to the growing sales of Chinese electric vehicle manufacturers such as Chery, BYD, Geely, and SAIC.

While European governments and consumers are eager for electric vehicles, Chinese car companies are leading the way in electrification. The European Union has imposed duties of up to 35% on Chinese cars, yet they are still 20% cheaper than other vehicles. Jackson suggested that Europe could learn from sectors like fintech, where there is a vibrant and innovative market, whereas the American industry still relies on outdated processes.

Octopus Energy, founded by Jackson, emerged from the need for a new way to manage energy supply and demand. Initially, Jackson tried to convince legacy businesses to adopt a fully revamped technology platform, but to no avail. He then decided to build a team that could modernize faster and provide lower costs due to operational efficiency.

The company has grown to become the UK's largest energy provider, surpassing all incumbents. The increasing adoption of renewable energy sources, such as wind and solar power, is also contributing to the shift towards a more sustainable energy mix.