Good Energy signs its largest ever power purchase agreement with Orsted, covering 400 GWh of offshore wind electricity over two years
Good Energy has agreed a 400 GWh (gigawatt-hour) power purchase agreement (PPA, a contract under which a generator sells electricity directly to a buyer at an agreed price) with Orsted, which the UK energy supplier described as the largest energy supply deal it has ever signed. The agreement runs from October 2026 to October 2028 and covers 200 GWh per year of renewable electricity sourced from Orsted's Walney 1 and 2 offshore wind farms, located off the coast of Cumbria in northwest England. The deal is expected to supply up to 74,000 UK homes annually. Fran Woodward, managing director of supply at Good Energy, said the agreement with Orsted marks a key milestone and would significantly increase the volume of predictable UK renewable power in Good Energy's portfolio. The transaction sits within the broader context of UK energy suppliers seeking long-term contracted renewable supply to underpin retail tariffs and reduce exposure to wholesale price volatility, while offshore wind operators such as Orsted look to secure offtake revenues outside of the UK government's Contracts for Difference (CfD) scheme. For Good Energy specifically, expanding PPA volume supports its stated ambition to grow supply in the UK market.
Why this matters
Long-term PPAs between offshore wind generators and retail energy suppliers are a growing area of transactional work as the UK's renewable energy fleet matures and operators seek revenue diversification beyond government-backed CfD contracts. The Walney offshore wind farms are established assets, making this a commercial offtake arrangement rather than a project-finance or construction-phase transaction, but the two-year duration and volume commitments still require careful drafting of price, balancing, and curtailment provisions. For City energy teams, the deal illustrates the growing market for corporate and utility PPAs as a complement to, rather than replacement for, regulated revenue streams.
On the Ground
A trainee on a PPA transaction would review and summarise grid connection agreement terms, assist with the analysis of regulatory filing requirements under Ofgem frameworks, and coordinate due diligence on the underlying generation assets, including licence conditions and planning permissions associated with the Walney wind farm sites.
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“What are the key legal and commercial risks in a long-term power purchase agreement between an offshore wind generator and a retail energy supplier, and how would you advise a supplier entering into one?”
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