Insight 10th November 2020

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.

Weighted Average Cost of Capital