The Cabinet wants to introduce a two-sided Contract for Difference (CfD)* from 2027. Such an instrument offers developers and financiers more certainty and strengthens the financeability of projects. The mechanism has already been introduced or explored in other countries.

NedZero - Trade association for wind energy and Holland Solar are pleased that clarity is being offered on several points about the interpretation of the CfD for wind and solar energy projects. At the same time, we are critical of the lack of choices, for instance on budgeting and how to deal with the increasing negative price hours. This keeps financiers and developers in uncertainty, while clarity is needed. We would like to remain involved in the further elaboration of the scheme.

The Chamber letter is here. find. A two-sided Contract for Difference (CfD) is an agreement between two parties, where one party (often a government or a public agency) and a developer agree on a price for a product, e.g. electricity. If the market price of that product is lower than the agreed price, the government pays the difference to the developer. If the market price is higher, the developer pays the excess to the government. This provides a degree of price stability for the developer and reduces the risk of price fluctuations

#sde # solar farms# wind farms # renewable energy #cfd

source: Hollandsolar