UK’s LCCC Signs Contracts for Difference with AR7 Winners

The UK Low Carbon Contracts Company (LCCC) has signed Contracts for Difference (CfD) with more than 200 projects awarded in the Allocation Round 7 (AR7), covering a total capacity of around 14.7 GW, with 8.4 GW offshore wind projects accounting for the biggest share of the contracted capacity.

LCCC is the single counterparty to the CfDs and will manage the contracts over 15-20-year terms.

The seventh CfD allocation round was run with a separate process for offshore wind technologies, with other renewable energy projects competing in AR7a, where CfDs were awarded to 4.9 GW of solar and 1.3 GW of onshore wind projects.

Floating offshore wind was included in AR7 through a dedicated auction structure alongside fixed-bottom projects to provide support for test and demonstration-scale floating wind developments, with two floating wind projects securing contracts.

Fixed-bottom offshore wind represents the majority of the awarded AR7 capacity, with around 8.2 GW contracted at a weighted average strike price of about GBP 90.91/MWh (around EUR 105/MWh).

The fixed-bottom projects that won CfDs are RWE’s Norfolk Vanguard East, Norfolk Vanguard West, two Dogger Bank South East, Dogger Bank South West, and the Awel y Môr offshore wind projects, and SSE Renewables’ Berwick Bank B. The winning floating wind projects include the 100 MW Erebus in the Celtic Sea and the 100 MW Pentland in Scotland.

“Allocation Round 7 demonstrates the continued strength of the Contracts for Difference scheme in delivering low-carbon power and reducing our reliance on global fossil fuel markets”, said Dan Sadler, Director of Scheme Delivery at LCCC.

“LCCC’s role is to provide certainty and stability over the long term and we are proud to act as a reliable counterparty for these contracts, supporting projects from signature through to operation and beyond. These contracts will act as price stability mechanism over the next 15-20 years, helping to protect from external shocks.”

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