Ørsted PPA gives Good Energy price certainty from October 2026

Good Energy has agreed to take 200GWh of offshore wind electricity a year from Ørsted's Walney 1 and Walney 2 farms, running from October 2026 to October 2028. That volume is roughly one-sixth of the two farms' combined output, and the full 400GWh over the contract term could supply more than 74,000 UK homes annually on average usage. Reuters reported the deal as the largest the supplier has struck in its 26-year history.

The mechanism here is a long-term offtake contract with a single large generator, a shift for a supplier that has historically sourced from a decentralised base of over 3,300 independent renewable generators. Ørsted provides the scale and price certainty that the smaller-generator model cannot deliver at volume. Utility Week noted the arrangement builds on a 2023 contract under which Good Energy already procures 110GWh a year from Ørsted's Hornsea 1 farm.

What this means for UK buyers

For commercial buyers, the signal is about supply certainty rather than a same-day price move. If your renewable procurement depends on a supplier's ability to guarantee volume, long-term PPAs of this type underpin the contracts they can offer you. Good Energy has framed the deal as capacity to serve both residential customers and energy-intensive operations that need reliable supply, according to S&P Global.

What the deal covers and where the demand sits:

UK baseload day-ahead power over the past year sets the backdrop against which these long-dated offtake prices are being locked in.

• Walney 1 and Walney 2 offshore wind output (200GWh per year)
• Contract term October 2026 to October 2028 (two years)
• Existing Hornsea 1 offtake (110GWh per year, from 2023)
• Decentralised base of over 3,300 independent generators
• Data centre demand, including a campus near Newcastle

Data centres are the volume story to watch. Bloomberg reported that Good Energy is working with Stellium Datacenters at a major campus near Newcastle, targeting a 75% cut in carbon emissions. As data centre load grows, suppliers with locked-in renewable volume are better placed to serve energy-intensive sites that want traceable clean power alongside firm supply.

The wider read for buyers: expect more suppliers to blend long-dated offshore wind PPAs with distributed generation to hold volume at competitive prices. Watch how this offtake feeds into the renewable tariffs available from October 2026, and whether energy-intensive customers can secure similar traceability terms as data centre demand tightens the market.