Powersystems secure 300 MW of Contract for Difference Projects 

Contract For Difference (CfD) Generation Projects

Powersystems have been successful in securing the electrical balance of plant works on five windfarms secured in round one of the Contract for Difference (CfD)  generation contracts.

Working with established clients like; EDF, Innogy and Community Windpower, Powersystems will deliver the site electrical infrastructure for Dornell (177MW), Bad a Cheo (26MW), and Sneddon Law (48MW) windfarms.  

Working for civil contractors Jones Bros and RJ McLeods, Powersystems will deliver the site electrical infrastructure for Brennig (36.8MW) and Tom Nan Clach (39MW) windfarms.

The 117 Turbines in total will require Powersystems to install over 400km of cable to connect to the local grid.

Low-Carbon Electricity Generation

The Contracts for Difference (CfD) scheme is the government’s main mechanism for supporting low-carbon electricity generation.

Contracts for Difference (CfD) incentivise investment in renewable energy by providing developers of projects with high upfront costs and long lifetimes with direct protection from volatile wholesale prices, and 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 a Contracts for Difference (CfD)  by submitting what is a form of ‘sealed bid’. There have been two auctions, or allocation rounds, to date, which have seen a range of different renewable technologies competing directly against each other for a contract.

Successful developers of renewable projects enter into a private law contract with the Low Carbon Contracts Company (LCCC), a government-owned company. Developers are paid a flat (indexed) rate for the electricity they produce over a 15-year period; the difference between the ‘strike price’ (a price for electricity reflecting the cost of investing in a particular low carbon technology) and the ‘reference price’ (a measure of the average market price for electricity in the GB market).

Delivery partners

The Low Carbon Contracts Company (LCCC) is a private company, owned by BEIS. The LCCC is counterparty to the contracts awarded in CfD allocation rounds (auctions) and its primary role is to issue the contracts, manage them during the construction and delivery phase and make CfD payments.

National Grid is the Delivery Body for the CfD scheme, responsible for running the CfDallocation process.

Ofgem is responsible for hearing certain appeals.

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