Unlocking the power of CfDs to accelerate the energy transition

Position paper/report Download PDF

The Electricity Market Design reform highlighted the need for an appropriate investment framework to support capital-intensive large-scale investment in clean and flexible resources

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, ‘Unlocking the power of CfDs to accelerate the energy transition’:

–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


This document is the executive summary of an extensive report available upon request

Download PDF