Renewable energy retailer Octopus Energy has launched Intelligent Octopus, an integrated demand response, fixed-rate plan that rewards its US customers with a special rate for helping balance the grid when demand for energy is high.

By enrolling in Intelligent Octopus, users can benefit from the power of demand response, which reduces energy usage during peak demand to avoid system failures. Specifically, Intelligent Octopus lets users automate energy usage and save money when prioritising energy efficiency and grid resilience.

Intelligent Octopus will pair directly with smart home devices. With this beta launch, users can connect their smart thermostats to Octopus Energy’s system that monitors grid activity. When demand on the grid increases, Octopus adjusts enrolled users’ thermostats for five to fifteen minute increments to decrease energy usage, after which the smart home products are adjusted back to their original settings. This helps decrease demand on the grid when it nears its peak and rewards users for helping balance the grid through a lower rate.

Intelligent Octopus is powered by the company’s proprietary Kraken technology that uses advanced data and machine learning to automate a majority of the energy supply chain. This capability allows users to access power when it is cheaper and greener, while helping balance the overall stability of the grid. Intelligent Octopus will also expand to additional smart home devices and providers in the months to come.

“Too often the energy industry focuses only on the supply side, such as building more power plants or transmission lines,” said Michael Lee, CEO of Octopus Energy in the USA. “This strategy isn’t just inefficient, but it’s also extremely costly. Energy retailers who lead the future of the industry will focus on the ability of consumers to strengthen our energy systems and build new, innovative products that enable a balanced grid through more intelligent demand. With Intelligent Octopus, we’re making it easier than ever for consumers to engage with their energy use while rewarding them for taking positive actions to maintain the grid for themselves and their neighbours.”

Today, less than two per cent of users participate in demand response programmes in Texas, where UK company Octopus has its US base. This is because consumers are left with a status quo where most energy providers prioritise profit over quality service.

Traditional energy providers, says the company, take an approach that leaves consumers with unexpected price hikes, confusing bills and limited communication channels despite energy powering people’s everyday lives. These energy players have also been resistant to modern technology innovations that can improve user experiences, increase energy efficiency and enable a stronger grid.

Unlike these players, Octopus Energy is built on an AI and machine-learning platform that streamlines energy services and empowers its consumers with transparency around their energy bills and usage. Intelligent Octopus further expands its offerings and is one of the first demand response plans in Texas that rewards enrolled users for helping balance the grid.

Octopus Energy Group is a technology-driven, renewable energy retailer, directly supplying over 3.2 million customers globally with 100% green electricity at a cheaper price and with a focus on customer service. Founded six years ago in the UK, Octopus Energy entered the US market in 2020, fuelling the company’s global expansion. Octopus Energy is valued at nearly $5bn.