Statkraft has signed a two-year agreement with DONG Naturgas to purchase 50% of the electricity produced by Dong’s wind farms in the UK.

The company will purchase power generated from DONG’s Burbo Bank, Gunfleet Sands, Walney and London Array offshore wind farms, which have an installed capacity of 127MW, capable of growing to 545MW.

Under the £160m ($261m) agreement, a total delivery of 2.7TWh is estimated during the two-year contract period.

The contract will be managed by Statkraft’s UK Short Term Energy Management team based in Dusseldorf, Germany.

Stakraft executive vice-president, market operations and IT Asbjørn Grundt said the company is delighted to conclude the deal with Dong and looks forward to building a long and mutually profitable relationship between the two companies.