The energy crisis that started in 2022 reminded European governments of the resilience provided by relatively well-integrated European electricity markets. European Union leaders thus decided to reverse a creeping energy renationalisation and to invest in completing the internal market. However,...

Contracts for differences are widely discussed as a cornerstone of Europe’s future electricity market design. In this paper, we make three contributions to the debate. First, we summarize the dispatch and investment distortions that traditional CfDs cause. Second, we propose an alternative CfD...

Contracts for differences are widely discussed as a cornerstone of Europe’s future electricity market design. This is a paper on CfD contract design. We summarize the dispatch and investment distortions that conventional CfDs cause, the patches that are used to overcome these shortcomings, and...

The energy crisis that started in 2022 reminded European governments of the resilience provided by relatively well-integrated European electricity markets. European Union leaders thus decided to reverse a creeping energy renationalisation and to invest in completing the internal market. However,...