A total of 92 of the 95 contracts offered through the Fifth Allocation Round (AR5) of the UK government’s Contracts for Difference (CfD) scheme have now been signed and returned to Low Carbon Contracts Company (LCCC).

Generators will now proceed to work closely with LCCC to meet the contractual milestones specified in the CfD, supporting projects’ development and the delivery of more than 3.6GW of clean energy.

AR5 incorporated a range of diverse technologies, including tidal stream and geothermal for the first time, alongside established solar and onshore wind technologies within the CfD scheme.

Promoting greater diversity in GB's energy mix has been a primary objective of the CfD scheme, fostering the growth of a dependable and clean energy supply. This approach ensures price stability for investors and consumers.

The addition of AR5 projects will see:

  • 3.6GW of clean homegrown energy, enough to power the equivalent of 2 million homes.
  • First geothermal projects backed by CfD scheme.
  • 92 new contracts secured, including onshore wind, solar and tidal, helping to grow the economy and increase UK energy security.

Zero, LCCC’s new platform designed to support AR5, has enabled the process of contract signature and progression of milestones to be easier and more efficient.

Projects must now continue fulfilling their Initial Conditions Precedent (ICP) as the first step on CfD projects’ journey to construction and operation.

I am delighted that the CfD is supporting diverse emerging technologies, such as geothermal and the expansion of tidal generation. We are pleased to support the use of these new technologies and we will continue to work with all our generators to achieve the best possible outcome.

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