Swedish offshore wind developer Vattenfall has won a Contract for Difference in the UK for the Norfolk Boreas project, which has a capacity of 1.8GW, the company announces Thursday.

This is part of a keenly anticipated fourth round of contracts, known as UK CfD 4, where companies could bid on contracts awarded by the UK authorities.

Ørsted announced Thursday morning that the Danish company had won a contract for the Hornsea 3 project, which will be the world’s largest offshore wind farm with a capacity of 2,852MW.

As is the case with Ørsted, the contract price for Vattenfall’s Norfolk Boreas project comes to GPB 37.35 per MWh.

Briefly told, a Contract for Difference is a power sales agreement where a company launches a bid with a price per MWh hour from its project, and the lowest bid wins.

The price is determined over a set period, in this case 15 years, regardless of how the market price evolves. If the market price goes down, the state pays the difference to the company, and if it goes up, the company must pay the difference to the state.

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