The Low Carbon Contracts Company (LCCC) exists to accelerate the delivery of Net Zero, by mobilizing private sector investment in secure, low carbon energy, at the least cost to the consumer.
LCCC manages the Contracts for Difference (CfD) scheme, incentivising investment in renewable energy by providing project developers, who often have high upfront costs and long development timelines, with direct protection from volatile wholesale prices, whilst protecting consumers from paying increased support costs when electricity prices are high.
CfDs have been very successful in driving down the costs of renewable energy and helping accelerate the delivery of the government’s Net Zero Strategy, to the point where some technologies are now cheaper than that provided by fossil fuel power plants. LCCC now manages 167 CfDs, totalling 29.4 gigawatts of capacity.
The successes of CfD has led government to expand LCCC’s role into new schemes across Carbon Capture, Usage and Storage (CCUS), Hydrogen and Nuclear RAB. LCCC is the named as counterparty to the Dispatchable Power Agreement (DPA), and the nominated counterparty for Industrial CCUS and Hydrogen Production Business Model, subject to the successful completion of administrative and legislative arrangements.
LCCC also carries out the obligations of the Capacity Market Settlement Body, managing Capacity Market payments on behalf of our sister company, Electricity Settlements Company (ESC). This includes holding credit cover for Capacity Auction participants and conducting meter assurance.