Bloomberg Businessweek: Octopus Energy Plans to Spin Off Technology Arm Kraken

Date: September 22, 2025
Hosts: Carol Massar & Tim Stenovec
Guest: Amir Orad – CEO of Kraken Technologies

Episode Overview

In this episode, Carol Massar and Tim Stenovec dive into Octopus Energy's plan to spin off its technology arm, Kraken Technologies, a rapidly growing software platform helping utilities worldwide manage the transition to cleaner energy. Amir Orad, CEO of Kraken, joins in-studio to discuss the reasons behind the split, Kraken’s unique position in the energy tech market, and the broad challenges facing modern power grids. Insights abound on current energy transitions, the true value proposition of utility software, and what's next for the company and the industry at large.

Key Discussion Points & Insights

1. What is Kraken Technologies and What Do They Do?

[01:41–03:36]

• Kraken is a software platform that helps utilities modernize all aspects of their infrastructure—from billing to communications—as energy systems shift toward renewables and smarter technologies.
• Amir Orad: “We help them [utilities] modernize their entire infrastructure from billing to communication, from have a price to modern technology.”

Example of Value

• Kraken’s software helps flatten energy demand spikes—adjusting things like EV charging and home cooling to reduce grid stress and lower consumer costs.
• Amir Orad: “We help manage that spike, spread it a bit. Maybe we charge your car a bit later at night... Maybe we cool your home slightly differently during the day.” [03:36]

2. State of Renewables & US Grid Challenges

[02:39–04:19]

• Despite political debates, the shift to renewables is largely economic; solar is becoming the cheapest, fastest-growing source, and Texas leads US investment.

• Amir Orad: “Solar became so cheap and it's getting cheaper every day that everyone are moving to that. It's...a mix. It's never just solar or wind or nuclear.” [03:18]

• Orad clarifies a common misconception—energy grids are not ready for growing electricity loads from electrification and AI data centers; modernization is a must.

3. Is Transitioning to Electricity the Right Move?

[04:29–04:53]

• Electrification is safer (lower fire risks in homes) and has advantages, but grid investment must keep pace.
• Tim Stanovec: “What was moving from gas to electricity the right move? In hindsight, yes.”
• Amir Orad: “Houses burn less if you use electricity. It's a fundamental. It's a safety thing...but we do need to update our grid.” [04:42]

4. Cost and Consumer Benefits

[05:12–05:48]

• Orad argues that technology platforms like Kraken can—and already do—help lower consumer energy bills by optimizing grid usage and delaying or reducing costly infrastructure upgrades.
• Amir Orad: “Any usage of technology to optimize that will reduce that investment because we reduce the peaks. And part of that saving can go to every household.” [05:29]

5. Persistent Need for Tech, Even with "Perfect Grid"

[06:06–06:18]

• Even a perfectly built-out grid will need software to manage intermittent sources (solar, wind) and select the right mix in real time for lowest cost and reliability.

6. Energy Mix and Policy

[06:18–06:58]

• Orad stresses the need for a diverse energy mix. Policy choices that favor one type (wind, solar, gas) alone are shortsighted.
• Amir Orad: “The ideal mix is a bit of everything versus choosing one over the other.” [06:31]
• Amir Orad: “We have to have a mix.” [06:44]

7. Why Spin Off Kraken? Strategy vs. Financial Engineering

[06:58–08:47]

• Skepticism exists that the spin-off is primarily about increasing investor value, not innovation.
• Orad responds that Kraken needs independence to work with more companies (even those competing with Octopus) and to accelerate innovation.
  • Amir Orad: “We cannot grow and innovate and service the market when we're limited to a certain parent company.” [07:21]
• The split allows Kraken to attract late-stage software investors and scale faster internationally.

Valuation Talk

• Market rumors place Kraken’s value as high as $14B, but Orad downplays speculation:
  • Amir Orad: “Expectations should make you nervous. Our job is to build a great business and hopefully meet each and every expectation down the road.” [08:20]

8. Competing with Tech Giants

[08:47–09:30]

• With Amazon, Google, and Microsoft entering energy grid tech, why would utilities partner with Kraken?
• Orad says Kraken's sole focus is utilities, providing a unified platform versus the patchwork of multiple systems from general software giants.
  • Amir Orad: “You can go with Oracle and SAP...you would need to buy...all the way to 50 systems in order to service your technology stack...it's not designed for the needs of an energy company. And that's where we come in.” [09:01]

9. Details and Timeline of the Spin-Off

[09:30–09:47]

• Kraken has operated largely independently for 18 months; full operational and shareholder separation will be complete by mid-2026.
• Public listing is an option but not immediate.

10. Risks and Global Ambitions

[09:54–10:46]

• Orad identifies the biggest risk: fast-rising global demand for grid modernization and the company’s ability to keep project success rates high while scaling.
  • Amir Orad: “Our job is how do we service as many utilities as we can and making sure each and every project is a success. To date, all of our migrations...have been successful. Want to keep that track record while handling more and more demand.” [10:07]
• Kraken already serves 70 million households, with operations spanning Europe, Australia, Japan, Germany, France, and a recent major win in the US.

Notable Quotes and Moments

• On Why the Platform Exists:

  • “The issue is the grid is actually built for the maximum point in time. So every spike is really expensive for us as consumers. What we do is help manage that spike, spread it a bit...”
    — Amir Orad [03:36]

• On Electrification:

  • "Houses burn less if you use electricity. It's a fundamental. It's a safety thing...but we do need to update our grid.”
    — Amir Orad [04:42]

• On the Need for Energy Mix:

  • "The ideal mix is a bit of everything versus choosing one over the other."
    — Amir Orad [06:31]

• On Investor Hype:

  • “Expectations should make you nervous. Our job is to build a great business…”
    — Amir Orad [08:20]

• On Competing with the Tech Giants:

  • “Kraken is unique in that it does only one thing. We only do the platform for utilities, for energy companies...it's not designed for the needs of an energy company. And that's where we come in.”
    — Amir Orad [09:01]

Timestamps for Key Segments

• 01:41–02:39: Introduction to Kraken Technologies & company role
• 02:39–03:13: The reality & economics of US renewable investment
• 03:36–04:19: Specifics of what Kraken’s platform enables for utilities
• 04:29–04:53: Discussion on electrification and grid readiness
• 05:29–05:48: How technology lowers both investment cost and consumer bills
• 06:06–06:18: Why software is always needed, even with modern grids
• 06:18–06:58: Discussion on energy mix and policy choices
• 07:21–08:47: Justification for the spin-out and implications for growth/valuation
• 08:47–09:30: Defense against big tech competition; Kraken’s unique approach
• 09:30–09:47: Timeline for the spin-off completion
• 10:07–10:46: Risks, global scope, and scale

Conclusion

This episode gives an up-close look at the forces—and people—shaping the modern energy landscape. Kraken’s software is a crucial enabler for utilities transitioning to the complex, dynamic world of renewables. The spin-off marks a significant bet on independence, ambition, and the growing need for specialized platforms in a sector poised for rapid change. Orad’s remarks stress that tech, not just bigger wires or more turbines, will be the linchpin for cleaner, more affordable energy.