Contracts for Difference
The Contracts for Difference scheme is designed to support Britain’s transition to Net Zero. The long term contractual agreement encourages investment in renewable energy as it provides low carbon generators with a guaranteed revenue stream.
The Government introduced the Capacity Market to manage security of supply of electricity and ensure that Britain has enough reliable capacity to meet demand at least cost to consumers. The Capacity Market ensures electricity supply security by providing a payment for reliable sources of capacity.
Dispatchable Power Agreement
The Dispatchable Power Agreement is the proposed framework for power CCUS. Based on the CfD terms, it has been adapted to enable natural gas fired power CCUS facilities to play a mid-merit role in meeting electricity demand, displacing unabated thermal generation plants.
The Industrial Carbon Capture (ICC) business model has been designed to incentivise the deployment of carbon capture technology by industrial users who often have no viable alternative to achieve deep decarbonisation.
Low Carbon Hydrogen
The Low Carbon Hydrogen Agreement is the proposed contractual framework for The Hydrogen Business Model. The Hydrogen Business Model is technology agnostic and intended to support the growth of low carbon hydrogen production.
Regulated Asset Base
A RAB model has typically been used to incentivize private investment in public projects with significant upfront capital costs and a long asset life. This has included large scale infrastructure assets such as water, gas, and electricity networks in the UK.
Revenue Support Agreement
The Revenue Support Agreement (RSA) is the mechanism to mitigate demand related revenue risks to Transport and Storage companies (T&SCo) who provide Carbon Capture Usage and Storage (CCUS) facilities with transport and storage services.