Ørsted will no longer pursue SME and mid-market customers, focusing its energy supply business instead on large industrial and commercial businesses that use at least 30GWh of power per annum.
The company will still sell through brokers and third party intermediaries but aims to offload more of its offshore wind power through corporate PPAs, as well as green gas.
It will continue to serve existing mid-market customers but will not renew contracts when they expire.
The company explained its decision in a statement:
“For quite some time, we have been looking into how we can align our Danish and UK SME customers – customers with an annual consumption below 30GWh – and our energy consulting business with Ørsted’s global strategy. The conclusion is that these businesses are not compatible with the course we have set for Ørsted, despite the fact that our talented employees have succeeded in transforming and digitising the business in recent years, ensuring highly satisfied customers and achieving stable growth,” said Morten Buchgreitz, executive vice president of markets & bioenergy.
In February, Ørsted struck its first UK offshore wind PPA with Northumbrian Water. The water company will take around 100GWh a year, a third of its gross consumption from Ørsted, for ten years.
Speaking at the Energyst Event in April, Northumbrian Water energy development manager, Anthony Browne, said the fact that Ørsted could provide green power ‘direct’, rather than relying on REGOs (renewable energy guarantees of origin), played a role in its decision to sign the deal.
Related stories:
Northumbrian Water signs 100GWh offshore wind PPA with Ørsted
Ørsted plans green bond to fund Hornsea 2
Northumbrian Water signs deal to go 100% renewable
Ørsted eyes more wind, more profit
Wind drives Ørsted profit north
Ørsted posts bigs profit, eyes solar and storage
Ørsted to build 20MW Liverpool battery
Scottish Power boss: You’re bonkers if you think we will build offshore wind without subsidy
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