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.
Our Mission is to accelerate the delivery of net zero. We are proud of the role we’ve played to date and extremely excited about our expansion in the future. We enable investment into low carbon technologies, starting in proven technologies such as wind and solar and moving into Hydrogen and Carbon Capture, Usage and Storage.
We do this by:
- Operating the Contracts for Difference scheme
- Managing the Capacity Market operations and oversee the payments
- We also provide expert advice to help inform policy to accelerate the delivery of net zero.
What we do
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
Launched largest allocation round
The AR4 launch marked a significant milestone as it became the largest Allocation Round in the history of the CfD scheme. The total installed capacity commissioned under the scheme reaching 6.0GW as of 31 March 2022.
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
Launch of 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.
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Contact Us
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Our Schemes
Find out more about the schemes we deliver.
FAQs
View all frequently asked questions and our responses for our schemes and other resources.