DONG Energy has been awarded a contract to create the world’s biggest offshore wind farm.

The Hornsea Project Two has been guaranteed a strike price of £57.50/MWh under the Contracts for Difference (CfD) scheme – 50% lower than the previous round two years ago.

Under the CfD scheme, renewable generators bid for the contracts and qualifying projects are guaranteed a minimum price at which they can sell electricity.

DONG Energy is already building the first phase of the project, Hornsea One, with capacity for 1.2GW. It was guaranteed a price of £140/MWh in 2014.

The second phase, Hornsea Project Two, will have a capacity of 1.4MW, enough to power more than 1.3 million homes.

The latest project is among 11 new energy projects, worth up to £176 million per year, that have been awarded contracts. They include the Grangemouth Renwable Energy Plant, Moray Offshore Wind Farm and Northacre Renewable Energy Centre.