On 13 December 2021, the Fourth Allocation Round (“AR4”) for the UK Government's Contracts for Difference (“CfD”) scheme will open for applications. Here are some top tips to help applicants prepare.


  • Gather your information – work through the application form guidance and make sure that you have all the information you need to complete the application.

  • Check your documents – you must submit supporting documents relevant to your project alongside your application e.g. incorporation documents, planning consents, grid documents and project map plus additional documents for specific technologies/ projects e.g. supply chain certificates. Make sure you have these ready for submission and audit them to check they satisfy the eligibility criteria.

  • Consider minor and necessary modifications – minor and necessary modifications to the CfD Standard Terms must be agreed with the CfD Counterparty (LCCC) before applying for a CfD. Requests must be submitted at the latest 20 working days before the closing date for CfD applications. The tests are difficult to satisfy.

  • Complete the forms early – the application window is open from 13 December 2021 to 14 January 2022. If you want to enjoy the festive season then you may want to consider completing your forms at the start of the window giving you plenty of time to check and double-check before submission.

  • Be auction ready – make sure sufficient design, modelling and programming is done in advance of the auction window being announced so that you are ready to make key decisions and submit your bid containing: strike price; project capacity; target commissioning window; and target commissioning date. Remember that there is very limited scope to adjust capacity and dates post contract and so a good degree of certainty on these variables is required by the auction date.

Closing the Contract

  • Be ready to sign – Signed contracts must be returned to LCCC within 10 working days of issue or the offer lapses. Obtaining internal approvals at application and auction stages allows signature of the CfD by nominated persons quickly. Consider nominating multiple signatories to account for absences.

  • Prepare for Initial CPs in advance – Within 10 business days of signing the CfD the generator must deliver: (1) a legal opinion on the capacity and authority of the generator to enter into the CfD; and (2) evidence of identity to satisfy LCCC's know your customer checks. Two weeks is a tight window so gather the documents in advance. Failure to satisfy the Initial CPs in time entitles LCCC to terminate.

Please contact Sarah-Jane McArthur, Evie Rae or your usual Brodies contact if you require further information.