“Through a proposed ‘contract for difference’ Feed In Tariff, the Government will agree clear, long term contracts, resulting in a top up payment to low carbon generators if wholesale prices are low but clawing back money for consumers if prices become higher than the cost of low carbon generation,” says the government in a statement.
The government’s consultation document says that a FIT with contract for difference could work in a very similar way to the Dutch FIT and the Danish support scheme for offshore wind.
