The Contracts for Difference (“CfD”) scheme is a financial support mechanism used by the government to accelerate GB renewable and low carbon electricity generation projects. Projects that meet the eligibility criteria can apply for a CfD and if successful, will enter into a private contract with the Low Carbon Contracts Company (“LCCC”).
Clarion’s Energy and Infrastructure team have previously advised on the generic CfD agreement and contract variants for CfD and the terms and conditions to go with the CfD agreements for various renewable technologies including onshore wind and solar pv.
The results for the sixth allocation round (AR6) of CfDs were released on 3 September 2024.
Successful applicants (known as the “Generator”) are required to fulfil certain conditions, including initial condition precedents (“ICPs”) when entering into the CfD contract with the LCCC. Some of the conditions can be handled by the Generator however others require input from external legal services providers.
One of these key legal documents which forms part of the ICPs is a legal opinion executed by a legal services provider which needs to be provided to the LCCC. The legal opinion will also need to be provided alongside a small suite of corporate documents including a director’s certificate and board minutes.
If you have been successful in an application for a CfD in AR6 and need assistance with complying with these conditions (incl. ICPs) to sign the CfD contract, require assistance generally with the generic CfD agreement or one of its variants or the general terms and conditions of the CfD, please get in touch with Christian Hellmund.