Low Carbon Contracts Company

Low Carbon Contracts Company (LCCC) is a UK government-owned entity integral to the country's decarbonization efforts, specifically managing the Contracts for Difference (CfD) scheme. Established in 2014, its role is to facilitate investment in low carbon electricity generation by providing stable revenues to generators. LCCC acts as the counterparty to CfD agreements, paying generators the difference when market prices are below the agreed strike price, and collecting when they are above. It manages the financial aspects of these contracts, ensuring that suppliers contribute to the scheme's costs and ultimately supporting the transition to a net zero energy system. The company provides long term price certainty for renewable projects, which encourages private investment and helps deliver affordable, secure energy.