Contracts for Difference

Established by the Energy Act 2013. A generator receives (or pays back) the difference between an administrative strike price and a market reference price. The LCCC administers 612 contracts across seven competitive allocation rounds. Offshore wind strike prices fell from 114/MWh (AR1, 2015) to 37.35/MWh (AR4, 2022), then rose to 90.91/MWh (AR7, 2026) after supply chain cost inflation. Settlement data from the Low Carbon Contracts Company.