The Capacity Market has now been reinstated. If you had an agreement in the T4 2016 or 2017 auctions and you have withdrawn the credit cover or if you have conditionally Prequalified in T1 2019 you will be required to repost credit cover with the EMR Settlement Body by Friday 20 December. For Applications from the recent Prequalification round in October 2019 that are required to lodge credit cover with the EMR Settlement Body you will need to do this by Friday 15 November.
SharePoint
  • add link
  • add page
  • close

    ​CfD Overview​​ 

    Contracts for Difference (CfDs) is intended to provide long-term revenue stabilisation to low-carbon Generators, allowing investment to come forward at a lower cost of capital and therefore at a lower cost to consumers.


    ESO Burton Dassett Getty-173725213_medium.jpg

    CfDs support new investment in a wide-range of low-carbon generation and hav​​e been designed to​​ provide efficient and cost-effective revenue stabilisation for new generation by reducing exposure to the volatile wholesale electricity price, as well as encouraging competition as the UK makes the transition to a low-carbon generation mix. ​  

    CfDs require Generators to sell energy into the market as usual but, to reduce this exposure to electricity prices, CfDs provide a variable top-up from the market price to a pre-agreed 'strike price'. At times of high market prices, these payments reverse and the Generator is required to pay back the difference between the market price and the strike price, thus protecting consumers from overpayment.

    The CfD is implemented through a bilateral con​tract between the Generator and the Low Carbon Contracts Company (LCCC)​

    A dedicated website supported by all three Delivery Partners for Round 3 is available here - CfD Allocation Round 3 ​Resource Portal​.


    ​​​​National Grid ESO Role and Main Responsibilities

    ​National Grid ESO is the Delivery Body for Electricity Market Reform (EMR). Our responsibilities in delivering the regime include:

    • Conducting analysis to support the Department for Business, Energy and Industrial Strategy (BEIS) in setting of Administrative strike prices

    • Assessesment and qualification of applications and to notify applicants of the decision of qualification

    • Determination of disputes regarding the decision of CfD qualification (Tier 1 disputes)

    • Valuation of all applications and subsequent assessesment as to whether an auction is required to determine which applicants will be awarded a CfD

    • Run the CfD allocation process

    • Report the value of applicants to BEIS 

    • Production of reports as required to BEIS

    • Provide the LCCC with the information necessary to offer a CfD​​​​

    Latest News
    REFRESH

    Error loading news!

    There are no news to show.