Energiforsk publishes Ea report on CfD

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Ea has investigated “Contracts for Difference”, a part of a proposed EU reform of the electricity market design, which provide a revenue guarantee for low carbon generators. However, as this might disrupt market dynamics, a lot of care must go into the design of the CfD’s. This could be done by decoupling CfD remuneration from injection, such as in financial CfDs or capability-based CfDs, where the support is independent of the actual plant output.

In the report, Ea investigates the status of the Swedish electricity system, and what the potential role of CfD’s might be in the system, and provides guidance on how a technological neutral CfD tender could be designed.

The report can be found on the website of Swedish energy research institute Energiforsk here: https://energiforsk.se/program/framtidens-elmarknadsdesign-femd/rapporter/contracts-for-difference-cfd-in-the-swedish-electricity-market/