Contracts for Difference - Generator Guide (1st edition)
Posted 14.02.2019
We have published LCCC's Generator Guide to help applicants through the Contracts for Difference (CfD) Allocation Round 3 (AR3) process.
1. Overview of CfD Scheme: The guide provides an overview of the Contracts for Difference (CfD) scheme, which offers long-term price certainty to low carbon electricity generators, helping to mitigate their exposure to market volatility and political and regulatory risks.
2. Allocation Process: It details the allocation process for CfDs, outlining the steps and requirements for generators to secure payments under the scheme, ensuring they understand the financial and operational commitments involved.
3. Key Features and Operational Phase: The document highlights the key features of the CfD and what generators can expect during the operational phase, including important aspects like the Target Commissioning Date (TCD) and the Target Commissioning Window (TCW).
4. Importance of Timely Delivery: Emphasising the significance of the TCW, the guide underscores that any delay beyond this window results in a reduction of the contract term, thus incentivising timely project delivery.
This summary captures the essence of the document, focusing on the financial and operational aspects critical for generators participating in the CfD scheme.