Press Releases / Announcements

Dec 02, 2015Archived

Lynemouth is one of several projects provided with an investment contract under the Final Investment Decision Enabling for Renewables (FIDeR). The European Commission has announced that this UK support does in fact comply with state aid rules. The Commission agreed that the project furthers the UK low carbon energy agenda without overly influencing competition.

The Commission has already approved a number of FIDeR projects, and in December of last year the UK notified the EU commission of plans to subsidise the conversion of the coal-fired Lynemouth power plant to biomass. The UK Government intends to support the project with a Contract for Difference. The project is expected to generate about 2.3 TWh of low-carbon electricity per year once operating. The plant is due to use approximately 1.5 million tonnes of wood pellets per year, mainly sourced from the United States, Canada and Europe.

The non-confidential version of the decision will be published in the State aid register on the competition website under the case number SA.38762 once eventual confidentiality issues have been resolved. For more information, please see the European Commission's release.

Nov 30, 2015Archived

Electricity Settlements Company have published the ESC Annual Performance Report. This can be viewed here

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