Contracts for differences – Aliénor Cameron – EnRA Lectures

This lecture explores Contracts for Difference (CfDs), a key instrument for supporting renewable energy investment in Europe. It explains why renewable support schemes are needed, how CfDs work, and how their design shapes investment and operational incentives. The lecture discusses key design choices, including reference prices, negative price periods, and generation-independent CfDs, highlighting the potential trade-offs between different policy objectives.