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.

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.

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.

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.

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.

AR3 sees an additional 22 low carbon projects sign contracts, adding 5.8 GW of capacity.

18.8 TWh of low carbon power produced, making a considerable contribution to the country's energy mix whilst also reducing carbon emissions.

Managing 72 CfDs with an estimated value of £89bn, including the ground-breaking Hinkley Point C.

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.

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.

95 CfDs were awarded during our first annual allocation round with a variety of diverse technologies including tidal stream and geothermal notably successful.