Fabien Roques and Cesar Matinez, Chair of Eurelectric working group on Wholesale Market Design & Investment Frameworks, engage in a TRUE or FALSE game on Contracts for Differences (CfDs)
In the flagship study “Electricity market design, Fit for Net Zero”, Eurelectric and Compass Lexecon defined high-level recommendations on CfDs and other types of long-term contracts, stressing that guidance for the design of public de-risking schemes should be developed on best practices.
The recent reform of the electricity market design puts forward two-sided CfDs (and equivalent schemes) as the single support mechanism for direct price support to new capacity. However, the reform leaves a range of design issues open.
Against this backdrop, Eurelectric and Compass Lexecon released a new study, ‘Unlocking the power of CfDs to accelerate the energy transition’, which:
–Highlights key challenges and trade-offs associated with design and implementation of two-way CfDs for RES and low-carbon technologies
–Includes a range of alternatives addressing these key challenges
–Provides guidance on best practices to design an efficient CfD
Download the executive summary: [ Ссылка ]..
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Timestamps:
00:00 Intro.
00:08 We have what we need to invest massively in electricity and decarbonise.
01:08 Two-sided CfDs are the silver bullet to derisk investments.
01:47 The design of CFDs matters to de-risk investment.
03:22 Further guidance on CFD design from the European Commission is needed
04:10 We need trade-offs in the design of CFDs
#ElectricityMarketDesign #EMD #electricity
