Good Energy signs record 400 GWh PPA deal with Ørsted

Good Energy secures 400 GWh offshore wind supply from Ørsted

UK renewable energy provider Good Energy has signed a two-year Power Purchase Agreement with offshore wind developer Ørsted, securing 400 GWh of renewable electricity from the Walney 1 and Walney 2 offshore wind farms off the Cumbria coast. The deal represents the largest energy supply agreement in Good Energy’s 26-year history. It will run from October 2026 to October 2028, providing enough electricity to power approximately 74,000 UK homes each year.

The agreement highlights how UK energy suppliers are building direct relationships with renewable generators to secure long-term supply. For businesses watching energy market developments, this type of corporate PPA signals growing confidence in offshore wind as a stable, domestic energy source. It also reflects broader momentum in the UK renewables sector, which generated 152 TWh from wind and solar in 2025, accounting for 47% of total electricity supplies.

Understanding these market shifts matters for any business managing energy costs or working toward net-zero commitments. The growth of renewable PPAs affects wholesale prices, contract options, and the carbon intensity of grid electricity. Consequently, it influences everything from operational budgets to supply chain emissions reporting.

Walney wind farms provide sixth of output under new agreement

The Walney 1 and Walney 2 offshore wind farms, located off the Cumbria coast, will supply 200 GWh annually to Good Energy under the new arrangement. This volume represents roughly one-sixth of the combined output from both farms. Walney 1 and Walney 2 are established offshore wind assets with significant generating capacity, forming part of the UK’s mature offshore wind infrastructure.

Ørsted, the Danish energy company and wind farm operator, will provide the electricity through this corporate PPA structure. The deal adds to Good Energy’s existing portfolio of over 1,500 contracts with renewable generators across the UK. These contracts enable Good Energy to supply renewable electricity to domestic and business customers while supporting the business case for continued renewable generation investment.

Fran Woodward, managing director of supply at Good Energy, described the agreement as a key milestone for the company. The deal surpasses previous major contracts Good Energy has signed, including a three-year agreement for 110 GWh per year from Ørsted’s Hornsea 1 wind farm and a £50 million deal for 12% of output from the Westermost Rough wind farm. In total volume terms, the Walney agreement represents the largest commitment Good Energy has made to date.

The timing aligns with a period of significant expansion in UK offshore wind capacity. In 2025, the UK government secured 8.4 GW of new offshore wind capacity through its largest-ever auction round. This supports the sector’s long-term growth trajectory and reinforces offshore wind’s role in meeting national energy and climate targets. Meanwhile, the renewable electricity these farms generate will contribute to reducing grid carbon intensity, which affects Scope 2 emissions calculations for businesses across every sector.

How corporate PPAs affect business energy costs and carbon reporting

Corporate Power Purchase Agreements like this one between Good Energy and Ørsted represent a specific approach to energy procurement. Under a PPA, a buyer commits to purchasing electricity directly from a renewable generator over a fixed period. This provides price certainty for the buyer and revenue stability for the generator, supporting investment in new capacity.

For businesses, the growth of corporate PPAs in the UK market creates several practical implications. First, increased renewable capacity under long-term contracts can help stabilize wholesale electricity prices by reducing reliance on volatile fossil fuel markets. Second, businesses with high electricity consumption may consider corporate PPAs themselves to lock in pricing and secure renewable electricity for their operations. Third, the expanding pool of renewable electricity under contract affects the carbon intensity of grid electricity, which matters for any business reporting Scope 2 emissions.

Scope 2 emissions cover indirect emissions from purchased electricity. As grid carbon intensity falls due to higher renewable generation, businesses’ reported Scope 2 emissions decrease accordingly. However, businesses increasingly need to demonstrate specific renewable electricity sourcing to meet customer expectations, tender requirements, or supply chain standards. Simply relying on falling grid intensity may not suffice for businesses facing stringent carbon disclosure requirements from public sector buyers or corporate customers.

Public sector procurement in particular has driven demand for verified renewable electricity supply. Procurement Policy Note 06/21 requires suppliers bidding for major government contracts to publish carbon reduction plans and demonstrate progress toward net zero. Many businesses therefore need renewable electricity backed by Renewable Energy Guarantees of Origin (REGOs) or similar certification to evidence their carbon reduction claims. The growth of corporate PPAs expands the pool of certified renewable electricity available to businesses through their suppliers.

Energy cost management also remains critical for SMEs. Electricity represents a significant operating expense for manufacturers, logistics companies, cold storage facilities, and data-intensive businesses. Long-term price certainty through renewable PPAs can help these businesses manage budgets and reduce exposure to fossil fuel price volatility. However, most SMEs lack the scale to sign corporate PPAs directly with generators. Instead, they rely on energy suppliers like Good Energy that aggregate renewable supply and offer retail contracts backed by renewable generation.

The Walney deal also illustrates how established offshore wind farms continue generating revenue beyond their initial subsidy periods. Walney 1 and Walney 2 were built under earlier support mechanisms and are now operating in a more mature market. Their ability to secure long-term PPAs demonstrates that offshore wind can compete commercially without ongoing subsidies, which supports the case for continued sector investment and capacity expansion.

What UK businesses need to know about renewable energy supply

• Good Energy has signed a two-year PPA with Ørsted for 400 GWh of electricity from the Walney 1 and Walney 2 offshore wind farms, starting in October 2026.
• The agreement represents the largest energy supply deal Good Energy has signed in its 26-year history, providing enough electricity for approximately 74,000 homes annually.
• UK renewables generated 152 TWh from wind and solar in 2025, accounting for 47% of total electricity supplies, reflecting the sector’s growing contribution to the grid.
• Corporate PPAs between suppliers and generators provide price certainty and support investment in renewable capacity, which can help stabilize wholesale electricity markets.
• Businesses reporting Scope 2 emissions benefit from falling grid carbon intensity as renewable generation increases, though specific renewable sourcing may be required for tender compliance.
• The UK secured 8.4 GW of new offshore wind capacity in 2025 through its largest auction round, supporting continued sector growth and investment.

Energy sourcing decisions affect compliance and competitiveness

For businesses navigating net-zero commitments, energy sourcing decisions increasingly affect both compliance and competitiveness. Public sector suppliers must demonstrate carbon reduction progress to meet PPN 06/21 requirements. Similarly, businesses in supply chains for major corporations often face carbon disclosure requests through platforms like CDP or EcoVadis. Renewable electricity sourcing forms a core component of these responses.

Manufacturers and logistics companies face particular pressure. Energy-intensive operations generate significant Scope 2 emissions, making renewable electricity a priority for carbon reduction. Moreover, businesses tendering for public contracts or supplying large corporations may need to evidence renewable electricity procurement through REGOs or similar certificates. Without this evidence, carbon reduction claims lack credibility, potentially affecting tender scores or customer relationships.

The growth of offshore wind capacity also affects grid reliability and energy security. Domestic renewable generation reduces reliance on imported fossil fuels, which strengthens energy independence and reduces exposure to international price shocks. For businesses, this matters because energy supply stability and price predictability affect operational planning and financial forecasting. A more diverse energy mix with greater renewable capacity generally supports more stable long-term pricing.

However, businesses should also consider the intermittency of renewable generation. Wind and solar output fluctuates with weather conditions, requiring grid balancing through storage, interconnectors, or backup generation. Energy suppliers manage this complexity through their portfolios of generation contracts, grid balancing services, and storage assets. Nevertheless, businesses with critical operations may need backup power systems or flexible contracts that account for supply variability.

Cost considerations remain important for SMEs with tight operating margins. Renewable electricity contracts may carry different pricing structures compared to conventional supply agreements. Some suppliers offer fixed-price renewable contracts that provide budget certainty, while others offer variable pricing linked to wholesale markets. Businesses should evaluate their risk tolerance, consumption patterns, and budget constraints when selecting energy contracts. In addition, businesses should verify that renewable claims are backed by genuine renewable generation and appropriate certification, rather than relying on vague green tariff marketing.

Practical steps for businesses reviewing energy contracts

Businesses reviewing energy contracts should start by understanding their current consumption patterns and carbon footprint. Electricity consumption data from recent bills provides the baseline for evaluating contract options and calculating potential carbon savings. This data also helps businesses assess whether they might benefit from renewable electricity sourcing, either through their existing supplier or by switching to a renewable-focused provider.

Next, businesses should clarify their carbon reporting obligations. Companies bidding for public sector contracts need renewable electricity backed by REGOs to evidence carbon reduction claims under PPN 06/21. Those in corporate supply chains may face similar requirements from customers or industry standards. Understanding these obligations helps businesses select appropriate energy contracts and avoid paying for features they may not need or failing to secure necessary certification.

When evaluating suppliers, businesses should ask specific questions about renewable sourcing. Where does the electricity come from? What certification backs renewable claims? Are REGOs or equivalent certificates provided? How does the supplier manage supply variability? Clear answers to these questions help businesses distinguish genuine renewable supply from superficial green marketing. Furthermore, businesses should compare contract terms, including pricing structures, contract length, exit clauses, and pass-through charges for grid balancing or network costs.

Businesses should also consider timing. Energy contracts typically run for one to three years, and market conditions vary. Signing a long-term fixed-price contract during a period of high wholesale prices locks in those costs, while variable contracts offer flexibility but less budget certainty. Businesses should assess their risk tolerance and financial planning needs when deciding on contract structures. In addition, businesses approaching contract renewal should allow sufficient time for market research and supplier comparison, rather than accepting automatic rollovers that may not offer competitive terms.

For businesses with significant energy consumption, exploring corporate PPAs may be worthwhile. Although most SMEs lack the scale to sign PPAs directly with generators, consortiums or aggregated PPA structures sometimes enable smaller businesses to participate. These arrangements allow multiple businesses to collectively commit to purchasing renewable electricity from a specific generator, sharing the benefits of long-term price certainty and renewable sourcing. Businesses interested in this approach should consult energy procurement specialists or trade associations for guidance on available options.

Training and capacity building also matter. Businesses can access SBS Academy training on energy management and carbon reporting to build internal expertise on energy procurement, emissions accounting, and compliance requirements. This knowledge helps businesses make informed decisions about energy contracts, evaluate supplier claims, and respond effectively to customer or tender requirements related to carbon reduction.

Further information on renewable energy and carbon reporting

Businesses seeking additional guidance on renewable energy procurement and carbon reporting can access several authoritative resources. The UK government’s Department for Energy Security and Net Zero publishes policy updates, statistics, and guidance on renewable energy and net-zero strategy. This includes data on renewable generation capacity, grid carbon intensity, and support mechanisms for renewable energy projects.

For carbon reporting requirements related to public sector procurement, businesses should review Procurement Policy Note 06/21 directly. This sets out the requirements for carbon reduction plans and provides templates and guidance for suppliers. Businesses can also access support through SBS compliance services for carbon reporting and PPN 06/21 to ensure their reporting meets government standards.

Industry bodies provide additional resources on energy procurement and sustainability. The Institute of Environmental Management and Assessment offers guidance on environmental management, carbon reporting, and sustainability strategy. The Chartered Institute of Procurement and Supply provides resources on sustainable procurement practices, including energy purchasing and supply chain carbon management.

Businesses working toward broader net-zero commitments can access our net-zero program for carbon reporting compliance to develop comprehensive carbon reduction strategies. This includes support for emissions measurement, target setting, and reporting across Scopes 1, 2, and 3. For businesses interested in renewable energy sourcing specifically, comparing supplier offerings and understanding market developments through government and industry publications helps inform procurement decisions and ensures alignment with compliance requirements.