Low Carbon Contracts Company (LCCC) and Electricity Settlements Company (ESC) have today published their annual reports and accounts for 2022-2023.
The report covers the period from 1 April 2022 to 31 March 2023. The energy crisis and the Russia – Ukraine war continued to bring challenges and uncertainties in the market. However, LCCC’s commitment to accelerating the UK's Net Zero objectives remained unwavering. Throughout this year, we have continued to work with our stakeholders in our well-established schemes like Contracts for Difference (CfD) and Capacity Market but also developing our new schemes, such as Carbon Capture, Usage, and Storage, as well as Hydrogen production.
The reports provide a detailed account of the work and achievements of both companies over the previous financial year.
Key developments include:
CfD portfolio progress:
- Allocation Round 4 brought an impressive mix of technologies, from tidal streams to floating offshore wind, along with established technologies like solar, onshore, and offshore wind, making it the most diverse CfD round to date.
- The fourth round delivered 93 individual projects with 99 contracts, accelerating our CfD portfolio with a 60% increase in overall capacity set to power 12 million homes.
- The combined low-carbon electricity output surged to a 19.0TWh, enough to power over 80% of Scotland.
Capacity Market progress:
- Leveraging existing data for increased automation and enhanced data quality.
- Improved accessibility for smaller flexibility providers, fostering a more inclusive system.
- Enhanced data validation for potential stress events, ensuring data is used effectively and accurately.
- Prioritizing stress-event preparation to minimize the risk of inaccurate settlement, preserving confidence in the Capacity Market (CM).
Neil McDermott, Chief Executive said:
‘LCCC has had another very successful year despite the challenges of the crisis in the energy markets. I am proud of how our team has performed to support consumers and investors in this challenging time. We continue to perform well in our core Contracts for Difference (CfD) business and, in parallel, we have been working closely with Government and investors on the development of new schemes, including in carbon capture, usage and storage and hydrogen production. We have also continued to develop other emerging schemes, including Greenhouse Gas Removals and Sustainable Aviation Fuels. It is an exciting time to work in LCCC, as we grow and explore new areas of decarbonisation, developing solutions that are being tackled for the first time in the UK and perhaps the world.’
You can access both reports here:
Calling all suppliers! LCCC is cordially inviting you to our Supplier Engagement Event scheduled for February 29th, 2024 at Dartmouth House, Charlies Street, London.
We will be providing insights into our current activities, our plans for the future covering RAB, Ells, MHHS, DPA, Forecasting, Policy, and much more.
Additionally, we're excited to feature presentations from our special guests: EMRS, ICoSS, and Energy UK.
Register you interest here