The CfD scheme & the wind auctions

From the Renewables Obligation to Electricity Market Reform

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What the CfD is designed to solve

A CfD swaps volatile merchant revenue for a stable, contracted price. That single change cascades into lower financing costs, faster deployment, and a transparent price-discovery mechanism for government.

Strike price, reference price, and the two-way payment

A CfD is a private-law contract between a generator and the Low Carbon Contracts Company (LCCC). It tops up — or claws back — the difference between an agreed strike price and the market reference price.

Six allocation rounds, one decade of price discovery

All strike prices are in 2012 real £/MWh, the basis DESNZ uses so rounds stay comparable. Use the filter to switch technology, and read each round against the last. The full figures are also in the table at the foot of this section.

The full table

Every figure used in the charts above, with price basis stated. Hover a row to highlight.

Where these figures come from