CfD delivery partners

The government and its CfD delivery partners and others involved in the administration of the CfD scheme. The Department for Business, Energy and Industrial Strategy (BEIS) sets the policy and governance arrangements for the scheme, including the allocation rules, timing and budgets of allocation rounds, and Administrative Strike Prices.

The CfD delivery partners;

  • The Low Carbon Contracts Company (LCCC) is the CfD Counterparty under the regulations, responsible for processing requests for minor and necessary modifications at the outset of an allocation round, issuing CfDs in accordance with the CfD allocation, managing them through various milestones during the project delivery phase and making CfD payments during the operations phase.
     
  • Ofgem is responsible for handling Tier 2 application appeals.


Below is an overview of how the stages in the CfD scheme operate, from registration to auction, to award of a CfD, contract administration and settlement of payments.

Stages of the CfD Process

Budget,Technology pots,maxima/minima,supply chainrequirementsRegistration,Application and AllocationPre-generationcontractualrequirementsTarget CommissioningWindow(TCW)Difference payments forlow carbon generationDELIVERY BODYBEISLOW CARBON CONTRACTS COMPANY15 YEARS FROM START DATE12 MONTHSAPPROX.3 - 5 YEARSAPPROX.3 - 6 MONTHS

 

BEIS

Sets the policy and governance arrangements for the scheme, including the allocation rules, timing and budgets of allocation rounds, and Administrative Strike Prices.

Reviews Supply Chain Plans.

LOW CARBON CONTRACTS COMPANY

Processes Minor and Necessary Modification requests during this stage.

DELIVERY BODY

Manages and operates the front end of the process from initial registration, CfD applications, assessing the eligibility of applications for generic CfDs, conducting reviews for non-qualification (Tier 1 Disputes) through to CfD allocation.

OFGEM

Runs the Qualification Appeals process (if needed).

LOW CARBON CONTRACTS COMPANY

Signs the contract.

LOW CARBON CONTRACTS COMPANY

Manages CfDs throughout their lifetime including through various milestones during the project delivery phase, such as the Milestone Delivery Date 12 months from date of signing.

Makes CfD payments during the operations phase which can commence at any point within the Target Commissioning Window.

The Longstop Date is determined within the CfD as 12 months after the end of the Target Commissioning Window. If the Operational Conditions Precedent are not fulfilled by the Longstop Date, the CfD can be terminated.



Roll-over each segment to find out more about what is involved and the organisation responsible. For a more detailed view of the forthcoming CfD Allocation Round, visit our timeline here.