Commission guidance on the design of two-way contracts for difference

Summary

The European electricity system is undergoing a rapid transition towards clean energy, necessitating substantial private investment. However, market failures mean state support is often required to drive these investments. This guidance document assists EU Member States in designing effective two-way Contracts for Difference (2w-CfDs), which are mandatory for new renewable and nuclear generation facilities, to attract investment, ensure market efficiency, and reduce consumer energy costs. The initiative is currently in progress as Member States work to implement these new support schemes.

Key Facts

Source Document

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