Clifford Chance
Contracts for Difference: an EMR CfD Primer
19 October 2015
This primer briefing is the first in a series of briefings describing the principal mechanisms introduced as part of the UK Government's Electricity Market Reforms (EMR), namely:
- Contracts for Difference;
- Capacity Market Mechanism;
- Carbon Price Floor; and
- Emissions Performance Standard.
The EMR reforms have three key aims: to bolster the security of electricity supplies, encourage the decarbonisation of the power sector and keep energy affordable. This briefing looks at the Contract for Difference (CfD). It describes:
- What CfDs are and how they work
- How CfDs are allocated and the results of allocation round 1
- The key terms of the CfD contract
