CfD changes could be double-edged sword for generators

New CfD terms proposed by DECC aim to reduce uncertainty, prevent excess state aid and boost electricity storage, but could also have a chilling effect  

New CfD contracts could increase some risks and escalate due diligence costs. Photograph: Fabian Schmidt/123RFSome low-carbon generators could see their exposure to risk and costs from litigation and tighter state aid rules increase under changes to future contracts for difference (CfDs).

The changes, proposed in a consultation by DECC on 11 May, are intended to take effect in time for the second CfD auction later this year.

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