CfD Stakeholder Bulletin — 8 June 2023
Summary
LCCC published updated co-location guidance allowing CfD generators to co-locate with battery storage and hydrogen production facilities under existing contracts. The guidance clarifies permitted metering arrangements and configuration scenarios to support government targets of 1GW hydrogen by 2025 and 10GW by 2030. This implements existing CfD contract flexibility rather than changing the scheme structure.
Why it matters
This removes administrative barriers that prevented CfD generators from adding storage or hydrogen production, allowing better asset utilisation without requiring new support mechanisms. The guidance favours developers who can stack revenues from generation, storage, and industrial offtake, as such creating competitive advantages for integrated projects over standalone generation.
Key facts
- •1GW electrolytic hydrogen target by 2025
- •10GW hydrogen capacity target by 2030, at least 50% electrolytic
- •Webinar scheduled for 15 June 2023
Areas affected
Related programmes
Memo
Contracts for Difference: Stakeholder Bulletin 8 June 2023 LCCC co-location guidance published In the Smart Systems and Flexibility Plan 2021, government committed to removing barriers to flexibility and to working with the Low Carbon Contracts Company (LCCC) to better facilitate the addition of storage to Contracts for Difference (CfD) projects. As part of this ongoing work, and new government ambitions to have 1GW of electrolytic hydrogen production in operation or construction by 2025, LCCC recently published updated CfD Co-location Generator Guidance to facilitate innovative project configurations that provide value to the electricity system. Government’s overall ambition is for up to 10GW of hydrogen production capacity by 2030, at least half of which will come from electrolytic hydrogen. • Read the co-location guidance The updated guidance provides clarity on co-location scenarios that are permitted under the Generic CfD, including the metering arrangements that can support co-location with battery storage or hydrogen production. LCCC will be hosting a webinar on 15 June 2023 at 13:00 – 14:00 for stakeholders to hear more about the recently published guidance documents, which will include the CfD Co-location guidance as well as the new CfD Private Network Guidance. • Sign up to the webinar General Data Protection Regulation This stakeholder bulletin is being circulated to people who have opted in to the Contract for Difference stakeholder contact list. We issue these stakeholder bulletins as a convenience to interested parties, however it is not in any way essential to be on this list to participate in major consultations or allocation rounds. Purpose & scope of this list: This list is managed by the Department for Energy Security and Net Zero (and any successor departments) and will be used to inform interested parties of policy developments relevant to the Contract for Difference scheme for renewable energy projects (and any direct successor schemes). It is not used for any other purposes. To be removed from the circulation list: Please send a blank e-mail with the subject ‘opt out’ (if the receiving e-mail you use is different to the one you send the e-mail from, include that e-mail address in the subject of the e-mail) to BEISContractsForDifference@beis.gov.uk. If you have received this indirectly and want to be added to this list: Send a blank e-mail with the subject line ‘opt in’ to BEISContractsForDifference@beis.gov.uk. You can withdraw your consent to opt in at any time. We will normally keep your address on this list until you: a) withdraw your consent to opt in, b) the scheme closes without any successor, c) we receive reports your email address is no longer operational, or d) you do not respond to a periodic request from us to reconfirm your desire to opt in.