Low Carbon Contracts Company (LCCC) has announced that its flagship Contracts for Difference (CfD) scheme has reached 10 GW of operational capacity.
With the commencement of the Cleve Hill Solar Farm’s CfD, LCCC’s portfolio of low carbon electricity generation contracts has surpassed a threshold of 10 GW.
This represents enough electricity to power approximately 15 million homes across Great Britain, powering the national grid with low carbon sources like wind, solar and tidal energy.
The CfD scheme provides renewable generators a fixed price for the electricity generated over the life of the contract, giving developers and investors the long-term revenue certainty required to proceed with capital-intensive electricity projects.
Over the 11 years since its inception, the scheme has been instrumental in enabling low carbon electricity generation to be built at scale.
Once all projects contracted in the most recent Auction Round (AR6), are complete, the scheme will have leveraged a pipeline of more than £76 billion of private investment in Great Britain.
LCCC acts as the private law counterparty, levy administrator and settlement agent for the scheme, providing investors with confidence and security.
The scheme has been credited with catalysing a significant reduction in cost of renewable electricity, with offshore wind strike prices reducing from £165.13/MWh in the first Auction Round (AR1) to £77.50/MWh (in 2024 prices) in AR6.
Cleve Hill Solar Farm, on the North Kent Coast, has a CfD covering 112 MW of its 280 MW AC (373 MW DC) total capacity.
The largest solar farm in Great Britain, the site features 550,000 solar photovoltaic modules and a battery energy storage system currently under construction.
The commencement of this CfD brings LCCC’s operational portfolio to 10,000 MW.
The 10 GW milestone demonstrates the transformational impact of the CfD scheme on electricity generation in Great Britain. This world-class, gold-standard mechanism has provided the long-term revenue certainty investors need to proceed with major energy projects. LCCC is proud of the work we’ve put in to bring this first 10 GW to fruition. We look forward to scaling up our portfolio with a further 25 GW in the pipeline and due to come online by the end of the decade.
This is a significant milestone and a moment to recognise all the work involved across the energy sector in reaching this achievement. It shows how the CfD scheme has successfully incentivised private investment in the UK and has been a major factor in renewables supplying an ever-growing share of the country’s electricity. The CfD scheme remains the best way to ensure renewable capacity is secured at the most competitive price, which is why it has been replicated across the world. Investing in renewables means investing in our country’s energy security, creating jobs, building the domestic supply chain and ensuring households and businesses across the UK benefit from stable energy prices in the years ahead.
As the first solar and battery storage project to be consented as a Nationally Significant Infrastructure Project in the UK, Cleve represents a major milestone in the UK’s journey to meeting its decarbonisation goals. The certainty offered by the LCCC’s CfD scheme gives developers like Quinbrook the confidence needed to advance major clean energy projects such as Cleve, accelerating the delivery of new renewables infrastructure and helping to drive the UK’s transition to an affordable, secure and sustainable low-carbon future.
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