In this work, the authors present the major application and impact areas of Contracts-for-Difference (CfDs) in a European context, describe the most relevant design dimensions and discuss several design packages for CfDs as combinations of distinct design choices. They are discussed separately and in comparison.
The paper provides a detailed overview of CfD schemes implemented in Europe. This work comes against the backdrop of an ongoing European debate on reforming the electricity market and the broader introduction of CfDs.
