Insights: Why is the CfD value for money?

As the first steps on the road to Electricity Market Reform, the Contract for Difference (CfD) framework and transition to auctions delivered a well-needed shock to the industry.

The CfD’s framework remains central to delivering value for money for consumers and its impact in reducing the cost of capital – the implications of which can be seen by using our Weighted Average Cost of Capital (WACC) tool to explore how varying WACC impacts the cost of energy.