By Dominic Chopping

Danish renewable-energy company Orsted AS and Swedish state-owned utility group Vattenfall Group AB said Thursday they have been awarded low-carbon power contracts from the U.K. government's Contracts for Difference program.

Contracts for Difference pay a flat, indexed rate for electricity produced over a period of up to 15 years and aim to encourage investment in renewable energy by providing developers protection from volatile wholesale prices.

Orsted's award relates to its Hornsea 3 U.K. offshore wind farm and Vattenfall's relates to the Norfolk Boreas offshore wind farm.

The awards are part of the U.K.'s fourth contract-for-difference allocation round.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 07, 2022 05:33 ET (09:33 GMT)

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