Second Contracts for Difference auction for renewable technologies launched

[ALEO Admin]

On 3 April BEIS launched the second Contracts for Difference auction, which will provide £290 million worth of funding to support the development of clean energy.

A Contract for Difference (CFD) is a contract between a low carbon electricity generator and the Government-owned Low Carbon Contracts Company (LCCC). The electricity generator is paid the difference between the price for electricity reflecting the cost of investing in a particular low carbon technology and the average market price for electricity in the GB market.

CFDs are won through a competitive process which drives down energy costs for consumers and guarantees companies a certain price for the low-carbon electricity they produce over 15 years. This gives them the support and certainty they need to attract investment and get projects off the ground.

For more information, visit:
https://www.gov.uk/government/news/290- ... in-britain

The results of the first CFD auction were announced in February 2015. See:
https://www.gov.uk/government/statistic ... ne-outcome