British renewable energy group Octopus Energy has made a ‘multi-million pound’ investment to acquire a 24% stake in renewables developer Exagen.

The company made the investment through a newly launched €220m renewables fund Octopus Energy Development Partnership (OEDP).

Exagen focuses on partnering with farmers, landowners and local communities to build solar and battery facilities.

The deal will provide Octopus Energy with the option to buy a standalone 500MW / 1GWh battery located in the Midlands, England.

The battery, capable of supplying equivalent electricity usage of 235,000 homes, is currently in development and is slated to become operational by 2027.

Additionally, OEDP acquired three solar farms with on-site batteries and a combined capacity of around 400 MW in the Midlands and North East of England.

Octopus Energy also plans to invest in Exagen’s 2GW of solar and battery storage projects currently in pipeline, when they become ready for construction.

Exagen founder and CEO Jeremy Littman said: “All of us at Exagen are thrilled by this ground-breaking deal with Octopus, which will support us in our mission to build smarter, flexible renewable generation projects across the grid, enabling communities access to cleaner, cheaper energy.

“I believe our commitment to our staff, our technology-focused approach to operations, and above all our passion for local communities and the environment has aligned us with the Octopus team and we’re all looking forward to delivering on our promise together.”

Octopus Energy’s new fund OEDP will invest in solar, onshore wind and energy storage projects in the UK and the rest of Europe that would help in reducing dependence on gas imports.

Commenting on the new fund, Octopus Energy Generation CEO Zoisa North-Bond said: “This fund is helping to unlock huge amounts of new renewable energy across Europe, turbocharging the journey to greater energy security.

“The more new green power we can build, the faster we can reduce our dependence on gas imports and drive down energy bills for people in the UK and the rest of Europe.”

In September last year, Octopus Energy Group signed an agreement to receive up to $600m investment from Generation Investment Management.