McDonald’s UK has entered into a 15-year power purchase agreement for the entire output of the Douglas West Extension Wind Farm, located in Scotland and owned by asset manager Capital Dynamics. With a capacity of 66 megawatts, the site will comprise twelve Nordex N149 turbines and is expected to produce approximately 190 gigawatt hours annually starting in the first quarter of 2026.
The electricity generated will be shared with McDonald’s key suppliers through a contractual structure developed by energy group ENGIE. This mechanism will allow the company’s partners to directly access renewable energy and reduce indirect emissions related to their business with the fast-food chain.
A contract model structured for the supply chain
This power purchase agreement, also referred to as a Corporate Power Purchase Agreement (cPPA), is built on a multi-party structure. ENGIE will manage and deliver the electricity generated to McDonald’s and its suppliers. The approach aims to overcome the technical and financial barriers often faced by businesses seeking renewable energy sourcing.
The Douglas West Extension Wind Farm will generate enough electricity to power approximately 16,000 households in the United Kingdom. This agreement would enable McDonald’s UK to cover around one-third of its national renewable electricity needs over the contract period.
Local funding included in the project
Capital Dynamics has established a community development fund linked to the project. Managed by Foundation Scotland, the fund will provide approximately £300,000 per year to support local initiatives in nearby villages, including Glespin, Douglas and Coalburn. The funding will be administered in collaboration with a local community group.
This agreement marks a further step in Capital Dynamics’ strategy to structure subsidy-free energy projects. The company continues to develop a portfolio of renewable assets backed by long-term contracts with private-sector corporations across the UK.
ENGIE strengthens its role in contract-based energy supply
ENGIE, a key partner in this operation, draws on its experience in cPPAs to support large corporations in energy transition efforts. The company already manages several similar projects across Europe and positions this contract as a model for other firms seeking to embed green energy within their value chains.
The partnership with McDonald’s reinforces ENGIE’s presence in the UK market, particularly in contract-based energy supply solutions for major clients. Capital Dynamics and ENGIE plan to expand this type of collaboration with other companies operating in the United Kingdom.
