26 Aug 2024
Low Carbon Contracts Company (LCCC) and Electricity Settlements Company (ESC) have today published their annual reports and accounts for 23/24.
International interest in the Contracts for Difference (CfD) model has grown, with LCCC sharing best practice with several governments worldwide. We have continued to expand into new areas such as hydrogen and carbon capture, usage and storage (CCUS). Both the CfD and the Capacity Market have continued to grow, supported by a strategy of automation and digitisation, which has positioned LCCC to continue driving Britain’s Net Zero ambitions.
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:
- Two new offshore wind projects went operational this year, raising our total generating capacity to 9.1GW.
- Hornsea 2, a 1.3GW offshore wind project, achieved its CfD Start Date in March 2024 and was recognised by Guinness World Records as the world’s highest-capacity offshore wind farm.
- Allocation Round 5 (AR5) resulted in 92 new CfDs being signed, including nearly 2GW of solar and the introduction of the first geothermal projects, enhancing the diversity of the technology mix.
Capacity Market progress:
- ESC's new Mock Stress Event report, launched in November 2023, replicates Stress Event calculations and provides Capacity Market Unit (CMU) reporting. This automated process enables Capacity Providers to verify their CMUs' status and ensure data accuracy.
- Data quality initiatives and the automated processes for Satisfactory Performance Day (SPD) and Extended Performance, first deployed in 2022, are now in their second year and have shown positive impacts.
- ESC has collaborated with the EMR Delivery Body (EMR DB) to define and implement integrated Capacity Market (CM) processes.
Read the full reports here:
Low Carbon Contracts Company (LCCC) Annual Report 2023/24
Electricity Settlements Company (ESC) Annual Report 2023/2024
Posted: 26.08.2024...
Read the full news release here
