LCCC is the designated CFD Counterparty and manages a portfolio of 41 CFDs, including Onshore and Offshore Wind, Solar, Biomass, Energy from Waste, Advance Combustion Technologies and Nuclear.
In April 2015 we published the CFD Register, which is a public document containing details of all of the contracts we currently manage.
Excluded Site Register
This Register is published in accordance with the Contracts for Difference Regulations which introduced the requirement for Low Carbon Contracts Company Ltd, as the CFD counterparty, to establish and maintain a register of each excluded site to which a temporary site exclusion applies. Please see here.
How CFDs work
Contracts for Difference (“CFDs”) are designed to provide stability for Low Carbon generators to encourage the move towards a secure, diverse low carbon electricity supply in the UK. The CFD works by ensuring that generators receive a fixed, pre-agreed price for the low carbon electricity they produce during the time the contract is running. This is known as the ‘strike price’.
Generators will receive revenue from selling their electricity into the market as usual and independently of the CFD. However, when the market reference price is below the strike price they will also receive a top-up payment to the level of the strike price, which is calculated and paid by the Low Carbon Contracts Company. The cost of these payments will be met by the CFD Supplier Obligation, a levy on GB electricity suppliers. Conversely if the reference price is above the strike price, the generator must pay back the difference.
We often hold Stakeholder events to support industry readiness. Please click here to see information on past events and what's coming up.