Energy Crisis and Market Volatility Drive Long-Term Supply Deals as Good Energy Secures Largest-Ever PPA with Ørsted

Chippenham — Even as the global market for power purchase agreements (PPAs) has contracted overall, the ongoing energy crisis and continued market volatility are pushing Good Energy to rely increasingly on large, long-term electricity supply contracts to secure supply. Against this backdrop, the British green energy supplier and Danish offshore wind group Ørsted have significantly expanded their supply relationship.

Good Energy has signed the largest supply agreement in its roughly 26-year history with Ørsted, according to the company. The new contract builds on a partnership dating back to 2023 and substantially increases the supplier's annual procurement volume. Good Energy attributed the move to rising demand for domestically generated renewable electricity, from both households and large energy-intensive customers such as data centers.

Contract Details: Offshore Wind Power from the Irish Sea

The two-year agreement runs from October 2026 to October 2028. Over this period, Good Energy will purchase 200 GWh of electricity annually from the Walney 1 and Walney 2 offshore wind farms off the coast of Cumbria — around one-sixth of the two farms' output, according to the company. Over the full contract term, the volume totals 400 GWh, which Good Energy said is enough to supply more than 74,000 UK homes annually based on typical household usage. The agreement follows a 2023 deal for 110 GWh per year from the Hornsea 1 offshore wind farm.

Strategy: Growth through Larger Supply Contracts

Good Energy's business model has traditionally relied on sourcing electricity from more than 3,300 independent UK generators. With the Ørsted agreement, the company is adding larger, longer-term supply contracts to this decentralized model to strengthen supply security for its growing customer base, including large-volume customers with high, consistent power demand. In April, Good Energy announced a partnership with data center operator Stellium Datacenters, one of the UK's largest newly built data center campuses, located near Newcastle, aimed at cutting the site's emissions by 75 percent and linking its consumption directly to power generated by independent UK renewable producers.

Fran Woodward, Managing Director of Supply at Good Energy, said: "This agreement with Ørsted is a key milestone for Good Energy and marks the largest energy supply deal we have ever signed. More importantly, it represents a step change in the scale of our supply at a time when demand for home-grown renewable power is accelerating, driven by an ongoing energy crisis and heightened global instability." The agreement, she added, was also intended to support businesses seeking greater planning certainty in volatile energy markets amid the energy transition.

Joseph Conlan, Head of Origination at Ørsted, said: "We value our strong collaboration with Good Energy, and this PPA reflects the shared success we've built together on our previous PPA's." Ørsted, he added, intends to further develop the relationship in light of Good Energy's expansion plans and support its growth alongside the company's own portfolio development.

PPA Markets under Pressure

The deal comes as the global PPA market overall is shrinking. Worldwide, corporate renewable PPA volumes fell in 2025 for the first time in nearly a decade, dropping 10 percent to 55.9 GW; in the Europe, Middle East and Africa region, volume fell 13 percent to 17 GW, returning to 2023 levels. According to BloombergNEF, a growing number of hours with negative power prices is weighing on the economics of conventional wind and solar PPAs, pushing buyers increasingly toward hybrid contract structures. SolarPower Europe likewise reported a slowdown in corporate solar PPAs in more mature markets such as Germany, while countries with high wholesale prices, such as Spain, continue to see significant PPA growth. At the same time, demand from large power consumers remains a key market driver: major technology companies including Meta and Amazon accounted for 49 percent of global PPA activity in 2025.

Ørsted Shares Advance

Ørsted is one of the world's largest offshore wind developers, with around 10.2 GW of installed offshore capacity and a further 8.1 GW under construction. Shares in Ørsted, which is listed on the RENIXX World renewable energy index, rose 0.4 percent to EUR 20.11 (closing price, July 21, 2026) over the first two trading days of the week. Compared with the start of the year, the stock is up 24.6 percent (closing price December 30, 2025: EUR 16.14).

Source: IWR Online, 22 Jul 2026