Mechanism, Application, and Key Issues of Contract for Difference in Electricity Markets

2026/01/30 by Qixing Liu, Zhuochen Guo, Lanqing Shan +3 · 1 voice
Engineering · #Electric Power System Optimization #Integrated Energy Systems Optimization #Smart Grid Energy Management

paper · doi:10.1007/s40518-025-00276-7

crossref issued 2026/01/30 · crossref published 2026/01/30 · crossref published-online 2026/01/30 · openalex publication_date 2026/01/30 · crossref created 2026/01/30 · crossref deposited 2026/01/30 · crossref indexed 2026/01/30 · openalex created_date 2026/02/01 · openalex updated_date 2026/07/29

Citations

• Financial contracts for differences: The problems with conventional CfDs in electricity markets and how forward contracts can help solve them

Discussions

• This CS/RER paper surveys contracts for differences as a risk-hedging mechanism in the electricity industry. A downsides of CFDs is that they decouple generator profit from wholesale prices, which can [bsky, 1 points, 1 comments]