Press Releases / Announcements

Nov 18, 2015Archived

You may be aware that the Department of Energy & Climate Change (DECC) has today made an announcement regarding the second CFD Allocation Round.

The current intention is to hold this Allocation Round by the end of 2016, if Government’s strict conditions on cost reduction are met. We’ll be working with the different delivery partners to agree next steps and implementation plan, as further details are released. LCCC will also, in collaboration with delivery partners, hold events for Stakeholders to share further information on topics such as eligibility, the auction, the ‘Minor and Necessary’ process and contract award. Registration for these events will be through our website, so please register for the relevant stakeholder group to receive updates.

There are a number of parties involved in the CFD allocation process. The roles of each body involved are outlined below to assist you in directing any further queries:

-         LCCC is the designated counterparty to Contracts for Difference (CFDs). Its role is to manage CFDs, as well as to manage the Supplier Obligation Levy that funds CFD payments.

-         DECC sets the policy framework and leads on policy design and legislative implementation.

-         National Grid is the designated EMR Delivery Body. It runs the application, qualification and allocation processes for CFDs and the Capacity Market.

-         Electricity Market Reform Settlement Service (EMRS) provides settlement activities in relation to the CFDs and the Capacity Market.

LCCC also issues a monthly Bulletin to its Stakeholders. This will include updates on the Allocation Round and relevant information including dates of future events. If you would like to receive the Bulletin please contact info@lowcarboncontracts.uk. Further updates will be provided on our website, so please refer back for updates as the process progresses. For more information please see here.

Nov 05, 2015Archived

The Department for Energy and Climate Change (DECC) has today launched a consultation on the proposed 2015/16 operational cost budgets and levies, for the Low Carbon Contracts Company (LCCC) and the Electricity Settlements Company (ESC). The document can be found here and the consultation closes on 3 December 2015.

Nov 05, 2015Archived

This consultation seeks views on the government’s proposal to amend the Contracts for Difference (Definition of Eligible Generator) Regulations.

The amendment is in order to specify that retrofit Carbon Capture and Storage (CCS) projects, involving the connection of an existing power station to a complete CCS system, are eligible for a Contract for Difference (CfD). The proposed change would ensure that existing CCS policy is correctly and expressly reflected in the CfD legislation. Please see here

Oct 31, 2015Archived

By clicking here you can follow our company LinkedIn page.

We will be posting Company updates and links to relevant materials. We will also be posting any job vacancies we have available.

 

Oct 15, 2015Archived

The Government, Ofgem and National Grid have today (15 October 2015) published a number of documents that may be of interest.

These cover security of electricity supply, the Capacity Market and the Electricity Market Reform (EMR). More detail can be found on their website.

Oct 15, 2015Archived

Today (15 October 2015) DECC have opened a consultation on a number of proposed reforms to the electricity Capacity Market.

The most significant of these relate to new-build generating plants which could win agreements in the CM auction, and ensuring they face the right incentives and penalties to deliver fully and according to their agreements.  You can view the consultation document and illustrative drafting here. They invite stakeholders to respond to this consultation by 5pm on 10 December using their ‘e-consultation’ tool.

Sep 30, 2015Archived

We can confirm the Interim Levy Rate for the Fourth Quarterly Obligation Period, to run from 1 January 2016 to 31 March 2016.

The Interim Levy Rate for the Fourth Quarterly Obligation Period, to run from 1 January 2016 to 31 March 2016, will be set at £0.348/MWh and the Total Reserve Amount at £8,861,112,35.

  In arriving at its decision on the Interim Levy Rate and Total Reserve Amount, LCCC has considered the potential amount of CFD payments likely to be required to be made to CFD Generators under the existing CFDs and Investment Contracts (including the two Investment Contracts currently subject to and awaiting state aid approval).   LCCC notes the uncertainty relating to the timing of the state aid approval.

 

Sep 17, 2015Archived

The Department of Energy and Climate Change have published a consultation which makes proposals to the Contract for Difference Supplier Obligation. Information can be found here

Aug 13, 2015Archived

An independent study has commended the Low Carbon Contracts Company for the key part it has played in the first operational year.

For the full report please see here

LCCC, which celebrated its first birthday on 1 August, is the independent counterparty to CFDs and has been lauded by industry for the way it has supported developers of renewable energy and electricity suppliers involved in the scheme. The scheme is part of the Government’s wider Electricity Market Reform (EMR) programme designed to attract £100bn of investment into low carbon generation this decade alone.

LCCC Chief Executive, Neil McDermott, welcomed the early findings of the report saying: "We welcome feedback from our stakeholders at any time of the process but I’m pleased that the results show we haven’t just done what we were set up to do – but we’ve done it well.

"Our role within EMR, however, is clear. We are the designated counterparty to CFDs and we are managing CFDs relating to projects that are planning to deliver over 5.5GW additional low carbon capacity by 2020 - which is equivalent to almost 7% of current total installed electricity capacity in the UK."

He added: "Our targeted and proactive engagement with industry was pivotal in the contract signing process and in ensuring we got all 27 CFD contracts signed on 25 March and our dedicated Contract Managers continue to work with those projects through each key milestone in the CFD process towards the delivery of new low carbon generation."

The report was conducted by agency Bell Pottinger earlier this year to gain insight from industry into LCCC’s first year of CFD implementation. Stakeholders in the report defined LCCC’s role as critical in the process. The report follows the recent publication of the LCCC’s Annual Report which was published on Monday 3 August.

CFD Implementation

A main area of recommendation from industry was in the way LCCC conducted its CFD implementation events with industry. In particular LCCC’s Contract Management team were seen as "very effective in providing information (to stakeholders) with one adding "the seminars have been extremely thorough and necessary. Overall…brilliantly well done."

Development Opportunities

A number of trade bodies also suggested that LCCC could take on a broader role in the end to end cycle of the CFD process in order to help organisations through the logistical elements of CFD delivery.

Members of the investor community that were interviewed felt LCCC should provide a facility to bring transparency to the market "due to its apolitical, stable position and by hosting investor related events."

Consumer Engagement

It was also noted that there room for improvement in the engagement of consumers on EMR and that LCCC could step into this space by supporting the provision of helpful information.

The study was conducted at an early stage in the CFD process at a time when the first CFD signatories had been announced and the report also recommends further studies be done as EMR progresses adding "LCCC has succeeded in providing a good level of education and support to priority stakeholders, providing a strong platform for future engagement."

Ends

Notes to Editor:

1. To view a copy of the Perception Study please visit

www.lowcarboncontracts.uk. To view a copy of the Annual Report and Accounts for both LCCC and ESC please click here.

2. The Low Carbon Contracts Company and Electricity Settlements Company were launched in August 2014 to implement and deliver key elements of the Electricity Market Reform (EMR) programme. The companies play a pivotal role in attracting a proportion of the £100 billion investment needed this decade to replace ageing energy infrastructure with a more diverse and low-carbon energy mix.

3. The Low Carbon Contracts Company currently manages 27 CFDs across 25 projects. It also manages 12 Investment Contracts, early forms of CFDs, across six projects. Details of all the contracts the company manages can be viewed at

www.lowcarboncontracts.uk

4. For more information on this release please contact the Communications Team on 0207 211 8357 or email

info@lowcarboncontracts.uk

Aug 06, 2015Archived

The Low Carbon Contracts Company and Electricity Settlements Company have today launched their Annual Reports.

These can be found in the Publications section of our new website.