EDF Energy - Finance
EDF Energy - Finance
EDF Energy - Finance
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Contracts for difference<br />
Illustrative impact of contracts for difference on revenues for low<br />
carbon generators - £/MWh<br />
Introduction<br />
Generator pays<br />
difference<br />
• Description<br />
• Long term financial<br />
(not physical) contract<br />
Difference paid<br />
to generator<br />
• Referenced to wholesale power<br />
price (index to be defined)<br />
• Operational detail (and<br />
transition) to be defined<br />
• Implications<br />
• Price certainty for generator<br />
but operational and<br />
construction risks remain<br />
2010 2015 2020 2025 2030<br />
• Higher strike prices for more<br />
expensive renewables and CCS<br />
Illustrative contract strike price<br />
Power price + carbon price support<br />
Power price