Low Carbon Contracts Company (LCCC) and Electricity Settlements Company (ESC) have today published their annual reports and accounts for 2021-2022. Both reports are available under the 'Publications' tab on our website: Publications | Low Carbon Contracts Company
The reports cover the period 1 April 2021 to 31 March 2022. This challenging year saw us continue to deal with the impact of COVID-19 and Russia’s invasion of Ukraine. Nevertheless, we remained committed toward supporting the UK’s delivery of Net Zero, with our work seeing success in the Contracts for Difference (CfD) and Capacity Market schemes despite the numerous obstacles.
The reports provide a detailed account of the work and achievements of both companies over the previous financial year.
Key developments have included:
CfD portfolio progress:
- LCCC is managing 69 CfDs with an estimated fair value of £97.6bn, including the bespoke contract for Hinkley Point C.
- The CfD portfolio represents a pipeline of 18.6GW of new low-carbon capacity to be delivered by 2030. Two CfD projects became operational in 2021/22, commissioning 0.4GW and bringing the total operational CfD capacity to 6.0GW.
- The welcome return of site visits increased LCCC’s understanding of CfD generators.
- LCCC was named as the settlement body for the Regulated Asset Base mechanism to support new nuclear build, and also as the counterparty for contracts to support power Carbon Capture Use and Storage (CCUS) projects.
- Increased data analysis enabled us to make operational efficiencies and improved the visibility of performance in the Capacity Market.
- We worked closely with colleagues in Ofgem on CM Rule changes and submitting a response to their winter 2021 consultation on establishment of the Capacity Market Advisory Group (CMAG).
- We prioritised engaging with Capacity Providers through ESC’s webinars and at delivery partners’ events.
- A new CM timeline was created to help participants understand end-to-end Capacity Market actions and dependencies.
For further details and comment from Neil McDermott, LCCC Chief Executive, please refer to our full press release.
A Stakeholder Bulletin outlining the update has also been shared today and is available to download via the button on this webpage.