Mott MacDonald has successfully renewed its three-year framework with the Low Carbon Contracts Company (LCCC) to assist in the administration of the Contract for Difference (CfD), the UK Government’s mechanism for supporting low carbon energy generation.
CfDs incentivise investment in renewable energy by providing developers of projects, which have high upfront costs and long lifetimes, with direct protection from volatile wholesale prices. Conversely, they protect consumers from paying increased support costs when electricity prices are high.
Renewable generators located in the UK that meet the eligibility requirements can apply for CfDs through auctions, or allocation rounds. There have been three to date, which have seen a range of different renewable technologies competing directly against each other for a contract. A total of 79 contracts have been granted to 48 projects, and payments have been started under 29 of these contracts.
For the past three years Mott MacDonald has been lead technical adviser to LCCC. The renewal of the framework will see the company continue to focus on developer’s compliance against the technical aspects of the CfD and provide advice when variations or waivers are requested.
James Dodds, Mott MacDonald’s project manager, said: “Our work with the LCCC gives us a unique perspective on the low carbon market in the UK. As an integrated team, we have delivered a practical means of implementing contracts and issued guidance to developers to make the process more transparent and efficient. We are very privileged to be so closely involved in administrating CfDs.”
Ed Kriznic, LCCC head of contract management, said: “We are very pleased with the technical support provided by Mott MacDonald, which complements our LCCC contract management capabilities very well. Their staff always act in a very professional manner and maintain good communications throughout the process.”
Mott MacDonald’s role will continue until 2023.