Contracts for Difference Feed in Tariff (CfD FiT)

ENGIE offers Power Purchase Agreements (PPAs) that are fully compatible with the Government’s new Contract for Difference Feed in Tariff (CfD FiT) scheme.

This scheme replaces the Renewables Obligation (RO) as the main government support mechanism for new-build renewable generators. The RO will be closed to new applicants in April 2017.

Under FiT CfD, generators have a contract with the government-appointed Low Carbon Contract Company (LCCC), guaranteeing them a fixed price for all exported electricity. This is achieved by LCCC topping up the difference between the market value (the Market Reference Price) for electricity and the agreed contract-specific ‘Strike Price’. If the Market Reference Price is above the Strike Price, the generator must make payments back to the LCCC.

A PPA with ENGIE supports the CfD FiT mechanism by enabling generators to achieve the market value for their power. We also administer any difference payments to or from the LCCC under the CfD FiT contract, and roll everything into a single ‘all in’ monthly payment.


To find out more about PPAs from ENGIE and how we can help you participate in the CfD FiT scheme, please contact us on 0113 306 2021.