Ovo Energy has entered into its first power purchase agreement (PPA) with Orsted in a bid to strengthen its renewable energy credentials.
The supplier started offering customers “100 per cent renewable electricity” last October, backed by renewable energy guarantee of origin (REGO) certificates.
From today (8 April) the large retailer will purchase all of the power generated by the 90MW Barrow windfarm located off the Cumbrian coast. It expects the arrangement to provide 13 per cent of its electricity.
A further PPA deal is expected to be announced shortly, although the supplier did not add any more details when approached by Utility Week.
Ovo, which plans to become a net zero business by 2030, said by the end of the year it is aiming to increase the amount of renewable electricity purchased from UK renewable generation via PPAs to “almost 40 per cent”.
Ben Blake, chief executive of Ovo Energy, said: “We’re proud to work with Orsted on a major power purchase agreement.
“In the future, we’re committed to exploring how we can source more energy from renewable generation here in the UK, supporting the industry and helping to drive down costs.”
Hugh Yendole, director of Barrow Offshore Wind, said: ”It’s great to see our well-established assets such as Barrow offshore windfarm continuing to provide value to new customers.
“This agreement underlines the value of our investment during the last decade and of Orsted’s world-class operations and maintenance and asset management teams, keeping more mature assets productive and efficient for the foreseeable future.”