The Contracts for Difference (CfD) scheme is the government’s primary mechanism for facilitating the buildout of renewable energy generation capacity. Renewable Exchange offers a number of services designed to assist generators with optimising their approach to the CfD.
Prior to the allocation round
An analysis of the planning database provides insight into the potential quantity of auction participants. This is combined with a quantitative cost and budget analysis to evaluate possible implications for the resulting strike price, which provides useful context when formulating a bidding strategy.
Following the auction
Successful projects have a number of commercial decisions to make.
The PPA for physical power offtake (‘CfD PPA’) is a critical consideration, where extra value can be secured via minimising the discount to the day-ahead market to capture more of the strike price. Renewable Exchange can procure an optimal CfD PPA via a comprehensive tender process.
REGOs are a substantial source of value for CfD projects, and by trading certificates wholesale Renewable Exchange can help maximise the REGO value and secure additional fixed revenue for projects.
The ‘merchant nose’ PPA covering the period between commissioning and CfD delivery is a further consideration. Over 2,000 short-term utility PPAs have been secured through the Renewable Exchange platform, which contains a number of features to optimise these contracts – including: bespoke project-specific price forecasting, embedded benefits analysis, standard-form PPA contract, and more.
Get in touch with our team to discuss these services in further detail: [email protected]
