Spotlight: Contracts for Difference
Contracts for Difference (“CfDs”), previously mainly known as financial hedging instruments, are increasingly seen as the method of choice for incentivising investment in clean energy technologies. In the power sector, the CfD mechanism has emerged as the preferred arrangement to provide the required revenue support and stimulate the construction of new renewable power generating facilities. Following the successful experience with renewable CfDs (in the UK and several other countries), it has been recognised that the CfD concept may be suitable for applications beyond power generation. Work is in progress regarding CfD-based business models for clean hydrogen and carbon capture and storage (“CCS”). As an increasingly important support scheme to facilitate the global energy transition, CfDs are becoming an integral part of future energy markets in the coming years.
Fact check: Many UK wind power auctions set prices below the current market price
There is an auction every year to allow generators of renewable energy to bid for contracts under the British scheme.
Brookfield Acquires Share of Four UK Offshore Wind Farms from Ørsted
Two leading renewable energy players partner on operational U.K. offshore wind farms. Brookfield to acquire a 12.45% stake in 3.5 GW offshore wind portfolio...
Ford investors impatient for the automaker to rev up efficiency efforts
Ford stock dropped 8% this week as quality and cost issues raise concerns over CEO Farley’s efficiency plans and lagging EV goals.
Is the UK’s hydrogen infrastructure prepared for a CfD-powered future?
The U.K.’s green hydrogen CfDs faces cost, demand, and market challenges. An OIES paper says government support and innovation are essential.
How offshore wind would slash emissions and boost health in US and Canada
Resources for the Future: Offshore wind farms along the U.S. Atlantic and Gulf coasts provide a high benefit-to-cost ratio.
BASF receives funding approval for the construction of the world’s largest industrial heat pump for CO2-free steam generation
Heat pump will use waste heat from steam cracker for CO2-free steam production Greenhouse gas emissions from formic acid production at the Ludwigshafen...
‘Carbon contracts for difference’ are not a silver bullet for climate action
Canadian climate policies appear fragile — could carbon contracts for difference secure long-term climate action and investments?
Weak demand for low-carbon products hampers green investment, COP28 initiative says
Global green investment is lagging behind required levels to help transition heavy industry sectors to lower emission methods.
What can the global energy transition learn from the UK experience?
An IEA review of how the United Kingdom is doing in its efforts to reach net-zero emissions contains valuable insights for the global...
Iberdrola is awarded a 791 MW offshore wind farm in the United States
New England Wind 1 will provide 791 megawatts of clean, emissions-free offshore wind power to Massachusetts 7 Sept 2024 - 11:25 UTC +02:00 Iberdrola, through Avangrid, its...
