What is a Power Purchase Agreement?
A PPA is a long-term contract between a renewable energy generator and a buyer that locks in an electricity price and supply volume. It removes price uncertainty and allows businesses to guarantee clean energy sourcing for years ahead.
Why does Good Energy's 400 GWh deal matter?
The contract with offshore wind operator Ørsted is Good Energy's largest ever. It provides certainty for renewable supply, reduces reliance on fossil fuels in the UK grid, and signals investor confidence in wind energy's role in meeting decarbonisation targets.
How can UK businesses reduce their carbon footprint through PPAs?
Businesses can sign their own PPAs with wind or solar generators to secure renewable electricity, directly lowering their Scope 2 emissions. This is a proven decarbonisation lever used by major corporates across the UK and Europe.
How is the UK renewable market accelerating industrial decarbonisation?
Good Energy has signed what it describes as its "largest ever" 400 GWh Power Purchase Agreement with offshore wind operator Ørsted, according to an announcement on 15 July 2026. The deal represents a major milestone in UK renewable energy contracting and underscores growing appetite among energy retailers to lock in clean supply.
PPAs have become critical infrastructure for decarbonisation in the UK and across Europe. By committing to buy renewable electricity at fixed rates over 10, 15 or 20-year terms, companies remove price volatility and guarantee demand for wind and solar projects. This certainty encourages developers to build new capacity, which in turn displaces fossil fuel generation from the grid.
Good Energy's deal with Ørsted, one of the world's largest offshore wind operators, demonstrates the scale at which these contracts now operate. A 400 GWh annual supply is enough to power roughly 120,000 UK homes, or to decarbonise the electricity consumption of a large industrial site. The contract likely includes electricity from Ørsted's operational UK offshore wind farms and possibly from future projects.
What does this mean for UK carbon reduction targets?
The UK has committed to achieving net zero CO2 emissions by 2050, with interim targets of a 68% reduction by 2030 compared to 1990 levels. Electricity sector decarbonisation is the single largest lever for meeting these targets, according to climate analysts. Every major PPA signed accelerates the transition away from gas and coal.
When Good Energy supplies 400 GWh of renewable electricity to customers instead of grid average (which still contains roughly 15 to 20% fossil fuel generation in 2026), the annual CO2 savings are substantial. A typical offshore wind farm emits around 12 grams of CO2 equivalent per kilowatt-hour over its full lifecycle, compared to 400 to 500 grams for gas-fired electricity. Over a 15-year contract, this deal could prevent roughly 1.5 million tonnes of CO2 emissions from entering the atmosphere.
PPAs also create market signals that encourage new renewable capacity. Developers can refinance projects and commit investment when they have contracted offtake revenue. In this way, individual deals like Good Energy's create a multiplier effect across the UK's renewable infrastructure pipeline.
What should UK businesses do about their own emissions?
Companies have several levers to reduce Scope 2 emissions (those from purchased electricity). The most direct is to sign or contribute to a corporate PPA, which commits a proportion of annual electricity demand to renewable sources. The second is to increase the renewable content of grid-supplied electricity by purchasing renewable energy certificates (RECs) or Guarantees of Origin. The third is to invest in on-site solar, wind or battery storage.
For smaller businesses that cannot negotiate individual PPAs, aggregated purchasing schemes or renewable energy tariffs from suppliers like Good Energy offer an alternative route. These contracts still decarbonise electricity consumption and are typically cheaper and simpler than bespoke PPAs.
Offset Britain helps UK individuals and businesses take complementary action on the emissions they cannot yet eliminate. For individuals, verified carbon offsets start from £5.99 a month; for businesses, offsetting programmes are available from £566 a year. Combining renewable energy procurement with verified offsetting ensures transparent progress toward net zero.
Sources & Methodology
- Edie, "Good Energy signs its 'largest ever' 400 GWh PPA deal", 15 July 2026
- Carbon Brief, climate and energy analysis
- Offset Britain, carbon offsetting services
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Photo by Marcin Jozwiak.