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Podcast: Podcasts - Oxford Institute for Energy Studies
Episode: OIES Podcast – Contracts for difference in the energy transition: balancing market efficiency and risk mitigation
Description: In this latest OIES podcast from the Electricity Programme, Dimitra Apostolopoulou talks to the Director of Research at the Electricity Programme and Senior Research Fellow Rahmat Poudineh about his latest paper co-authored with Abolfazl Khodadadi titled "Contracts for difference – CfDs – in the energy transition: balancing market efficiency and risk mitigation". Contracts for Difference (CfDs) have emerged as a key policy instrument to incentivize renewable energy investments by mitigating revenue volatility. However, conventional CfDs, while effective in fostering growth in renewable energy sources, can introduce market distortions like the "produce-and-forget" mentality. In this podcast we discuss alternative CfD designs that addr...