Low Carbon Contracts Company

Low Carbon Contracts Company (LCCC) is a UK government-owned entity established in 2014 to manage Contracts for Difference (CfDs) for low-carbon electricity generators. This role supports the UK's electricity market reform by administering long-term contracts that reduce investment risk and facilitate compliance with energy policy objectives aimed at accelerating Net Zero.

The company oversees over 562 CfDs, representing a total contracted capacity of 50GW. In recent allocation rounds, such as AR7, it has awarded more than 200 contracts, enabling 14.7 GW of renewable energy capacity. Investment into CfD projects by AR6 operational is set to exceed £77 billion.

Additionally, LCCC administers a Supplier Obligation Mechanism, which imposes a compulsory levy on electricity suppliers to fund CfD costs. This mechanism ensures financial compliance and supports the economic framework for low-carbon projects across the United Kingdom.