Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 24th Aug 2026, 01:49:57am WEST
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Daily Overview |
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Thematic Session: Incentives and Policy Distortions in Electricity Markets (Streaming) Location: B008 Session Chair: Nicolas Astier, Paris School of Economics Session Chair: Marten Ovaere, University of Gent | |
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Market Inefficiencies in Renewable Support Policies: Evidence from Offshore Wind Contracts for Difference in Great Britain University of Gent, Belgium Inefficient market responses to renewable support schemes can increase costs and undermine decarbonization efforts. We study two-way Contracts for Difference (CfDs), which stabilize generator revenues but often distort generation incentives. Exploiting variation across support schemes and CfD design rules for offshore wind farms in Great Britain, we apply difference-in-differences to half-hourly unit-level data to provide the first ex-post evidence on CfD-induced inefficiencies in day-ahead and balancing markets. Market-based offshore wind farm units reduced output by 70-83% during negative-price hours; CfD units showed a similar reduction when payments were suspended after six or more consecutive negative-price hours. CfDs also distort the balancing market: generators curtail output by 23% less when they receive payments that cover the negative imbalance price; when they must repay, they curtail 19% more when the imbalance price drops below the payment. From 2019–2024, 2.9 TWh of generation was produced during negative-price hours, costing £176 million in CfD support. | |