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OIES Podcast – Contracts for Difference: The instrument of choice for the energy transition
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In this latest OIES podcast, Michal Meidan talks to Agniezska Ason, senior visiting research fellow at the OIES, and Julio Dal Poz, managing director at FTI consulting, about contracts for difference and how they can be used in the low carbon energy transition.
They discuss how Contracts for Difference (CfDs) are currently used to support the decarbonisation of electricity generation, their contribution to providing predictable revenues for operators but also their limitations: the regulatory and market risks associated with them. They talk about the lessons from the UK experience and efforts to use CfDs in Europe before assessing their current and potential uses for CCS as well as for hydrogen.
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