CfDs and GB’s Clean Power Revolution: Neil McDermott, CEO LCCC & ESC

In this episode of EIC Clearly, Stuart Broadley speaks with Neil McDermott, CEO of the Low Carbon Contracts Company (LCCC) and Electricity Settlements Company (ESC), about how one of the UK’s most critical, and yet less well known, public institutions has helped deliver one of the world’s most successful low-carbon electricity markets.

Stuart and Neil explore how the Contracts for Difference (CfD) model emerged from the UK’s electricity market reform, how auctions and long-term revenue certainty have driven down the cost of capital, and why the scheme has been instrumental in scaling offshore wind, solar and other low-carbon technologies. They discuss how investor confidence, competitive allocation rounds and stable policy have helped unlock more than £75 billion of private investment while protecting consumers from price volatility.

Looking ahead, they examine how the CfD framework is being adapted to support new technologies such as hydrogen, carbon capture and floating offshore wind, the growing importance of digital systems and data, the Regulated Asset Base model for nuclear, and how these mechanisms could shape the UK’s energy security, affordability and industrial strategy in the years ahead.