Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264921 
Year of Publication: 
2022
Citation: 
[Journal:] DIW Weekly Report [ISSN:] 2568-7697 [Volume:] 12 [Issue:] 35/36 [Publisher:] Deutsches Institut für Wirtschaftsforschung (DIW) [Place:] Berlin [Year:] 2022 [Pages:] 205-213
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
The German Federal Government passed the "Easter Package" in July 2022, which envisages a number of measures for the expansion of renewable energy sources. The package retains sliding market premiums as a remuneration mechanism, which protect electricity producers unilaterally, while contracts for difference (CfDs), which also protect electricity customers, are only used in the offshore wind sector. However, CfDs could lead to a reduction in financing costs and reduce electricity price risks for producers as well as households and companies. The decline in financing costs would strengthen the expansion of renewable energy sources. In this context, a simplified market value model and further developing the reference yield model could ensure a system-friendly expansion of renewable energy sources.
Subjects: 
Contracts for Differences
Renewable Energy
Support Mechanisms
JEL: 
Q40
Q41
Q42
Q48
D44
G32
Persistent Identifier of the first edition: 
Document Type: 
Article

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