Following from the Danish climate agreement on energy and industry from 22nd June 2020, it was decided to initiate an analysis of the development of the electricity market. Epinion and Ea Energy Analyses were commissioned to explore market-based alternatives to the current two-sided Contract-for-difference (CfD) support scheme for onshore wind and utility scale solar power.
To examine this, the team made in-depth qualitative interviews with stakeholders in the renewable energy industry and carried out a questionnaire among investment and financial sources including pension funds and banks.
The investigation showed that the current support scheme is neither attractive for renewable developers, nor was it desired by the investment and financial sources. Among the stakeholders, there was a general consensus that the possibility to hedge power prices was key to financing projects, but the market-based alternative, Corporate Power Purchase Agreements, was generally deemed more attractive.
The project ran from August 2021 to February 2022. It was undertaken for the Danish Energy Agency.
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