Our Mission
Our mission is to accelerate the delivery of Net Zero in the UK, driving the transition towards a low carbon economy.
We are proud of the role we’ve played to date in supporting renewable energy projects in the UK, and we’re extremely excited about our expansion in the future to champion innovative clean energy solutions.
We enable clean energy investment into low carbon technologies, starting with proven technologies such as wind and solar energy and moving into emerging fields like Hydrogen and Carbon Capture, Usage, and Storage (CCUS).
Through these efforts, we aim to significantly contribute to carbon emissions reduction and deliver impactful carbon reduction initiatives.
Operating the Contracts for Difference scheme
Managing the Capacity Market
Providing expert advice to help inform policy
One of the great things about leading this organisation is seeing how central we are to delivering the huge investment that Net Zero requires, at an affordable cost to the consumer.
What We Do
Our Commitment
We are dedicated to supporting the government’s objective of ensuring a reliable, low-cost, and clean energy system for our country
Our Role in Securing a Reliable Energy Supply
As the Capacity Market Settlement Body, we have key role in overseeing Capacity Market payment. We carry out this responsibility on behalf of our affiliate the Electricity Settlements Company (ESC)
Our Role in Low Carbon Electricity Generation
We are dedicated to supporting the government’s objective of ensuring a reliable, low-cost, and clean energy system for our country
Our journey so far…
2014
Low Carbon Contracts Company launched
The Low Carbon Contracts Company (LCCC) and the Electricity Settlements Company (ESC) were launched. LCCC was established to help the UK meets its carbon reduction targets by incentivizing Low Carbon generation. The ESC was created to simplify the complex process of settling payments between energy suppliers and generators.
2014
Contracts for Difference scheme introduced
The Contracts for Difference (CfD) was introduced under the Coalition Government to promote low-carbon forms of generation. It is a private law contract between a generator and the LCCC, which is owned by Government, under which the generator’s income per unit of electricity is fixed.
2015
Allocation Round 1 (AR1) launched
LCCC welcomed the first electricity generators to be awarded CfDs from Allocation Round 1 (AR1). A total of 23 contracts benefitted from this flagship scheme.
2016
Capacity Market Payments Started
The first Capacity Market payments commenced in October 2016, marking a significant achievement in the country’s efforts to ensure a reliable and affordable supply of electricity for households and businesses. Under the CfD scheme 657MW capacity became operational.
2017
Accelerating the CfD Momentum
An additional 16 contracts awarded in AR2. LCCC managed 57 CfDs with an estimated value of around £76bn, including Triangle Farm, Dudgeon with a diverse range of technologies, from Offshore Wind to Solar PV.
2018
Produced groundbreaking amounts of power
Produced 12.1 TWh of low carbon power, equivalent to the annual energy consumption of around 3 million households in the UK, also avoided approximately 3.5 million tonnes of harmful CO2 emissions.
2019
AR3 Launch Sparked 22 Successful Contracts
2020
Delivering 18.8 TWh of Low Carbon Power
18.8 TWh of low carbon power produced, making a considerable contribution to the country's energy mix whilst also reducing carbon emissions.
2021
Managing record number of CfDs
Managing 72 CfDs with an estimated value of £89bn, including the ground-breaking Hinkley Point C.
2022
AR4 became the largest Allocation Round
At the time, AR4 marked a significant milestone as it became the largest Allocation Round in the history of the CfD scheme.
2022
Leading UK Authority in Low-Carbon Energy
Our expertise was recognised by the UK's Department for Energy Security and Net Zero, thereby establishing ourselves as a leading authority on the management of low-carbon energy schemes in the UK.
2023
AR5 introduced a variety of new technologies
95 CfDs were awarded during our first annual allocation round with a variety of diverse technologies including tidal stream and geothermal notably successful.
2024
AR6 set a new record for contracts signed
AR6 saw the successful signing of 130 contracts, setting a new milestone with the highest number of contracts ever signed in a single round.
2025
Contracts for Difference scheme reaches 10 GW of operational capacity
This represents enough electricity to power approximately 15 million homes across Great Britain, powering the national grid with low carbon sources like wind, solar and tidal energy.
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FAQs
View all frequently asked questions and our responses for our schemes and other resources.
