UK struggling in Brussels over CfDs, EWEA warns

The European Commission decides state-aid issues

The European Commission decides state-aid issues

The UK government is losing the battle to convince Brussels that a key element of its Electricity Market Reform (EMR) package is compatible with EU competition law, warns the European Wind Energy Association (EWEA).

The debate hinges around the Contract for Difference (CfD) mechanism, under which low-carbon generators will agree a “strike price” for their electricity – offering both power companies and government long-term clarity on the cost of energy sold into the grid.

However, as it currently stands the CfD system appears to flout EU laws that prevent governments from blocking foreign competition or propping up mature industries. And the UK has not yet convinced the renewables industry that it will resolve the matter in time, warns Justin Wilkes, policy director at EWEA.

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