Why contracts for differences? A short video clip of RWE
In the RWE video, you can find out why contracts for difference are the better remuneration model than the previous one.
Sliding Market premium
sliding market premium
Since the introduction of tenders for offshore wind projects with the WindSeeG (2017), these have been remunerated according to the sliding market premium model. Here, the bidder sets a price with his bid, at which he would sell the electricity from the offshore wind farm if a bid was accepted. If the market price of the electricity is below the awarded price, the system operator receives the difference. If the market price is higher than the awarded price, the profits are paid out to the system operator.