Praised China's Energy Transition! UK Energy Giant CEO: Solar Panel Sales Surge 50% Amid Middle East Conflict

One of the UK’s largest energy companies, Octopus Energy, CEO Greg Jackson, said in an interview this week that after conflicts between the U.S., Israel, and Iran pushed up oil and gas prices, the company’s solar panel sales have increased by 50%.

Jackson pointed out that compared to February, this month’s sales of solar panels and heat pumps, as well as inquiries about electric vehicles and chargers, have seen a “massive increase.”

Jackson said that since July, when the UK energy regulator Ofgem reset the price cap currently protecting millions of households, UK families are “very likely” to face higher energy bills. While the company remains optimistic about the impact of this conflict, it is prepared for a “more serious” situation.

Since the outbreak of the US-Iran war on February 28 disrupted energy production and transportation in the Middle East, global oil and gas prices have soared. Rising energy prices can lead to higher costs for other goods worldwide, but this impact often first shows up at the gas station.

Jackson stated that after the Russia-Ukraine conflict in 2022, the UK experienced “more severe energy cost increases than we might currently see.” Many households may be confused about how high their energy bills will go in three months, which is prompting them to consider renewable energy.

He pointed out that customers are saying, “Look, we have to do something about this.” In this context, the company’s solar panel sales have increased by 50%, heat pump sales by 30%, inquiries about electric vehicles have risen by over a third, and inquiries about charging stations have increased by about one-fifth.

This data compares the first three weeks of February and March. Jackson noted that, typically, monthly order and inquiry numbers tend to be relatively stable.

Praising China’s steady energy transition

Jackson also emphasized the differences in the energy transition processes between China and Europe during the interview.

He was first asked to comment on recent remarks by BlackRock CEO Fink, who compared China’s energy progress with Europe’s, saying Europe is just “talk and no action.”

In response, Jackson said Europe is “worrying itself” over debates about whether green energy is advancing too fast or too slow, and issues related to North Sea drilling.

He pointed out that China is “steadily advancing” its energy transition, citing a report released last year by the China National Petroleum Corporation’s Economic and Technological Research Institute, which shows plans to phase out more gas stations.

“They (China) are doing this because it makes them more resilient, especially in facing crises in the Middle East and the global fossil fuel industry again. Energy security can be increasingly well protected,” Jackson said.

Regarding the claim that increasing North Sea oil exploration would boost UK energy resilience, Jackson dismissed it.

He said this would have only a “negligible impact,” adding that the fossil fuel industry will never have large idle capacities, which is why prices “soar” when supply shortages occur.

He emphasized that the most important thing is to reduce electricity costs in the UK, which will enable more people to use electric vehicles and heat pumps.

Although electric vehicles were once considered expensive, he noted that the price gap between gasoline cars and EVs has narrowed, and the used car market is growing. The gap preventing low-income families from affording EVs due to high prices is “disappearing.”

(Source: Caixin Global)