In 2024 Market Analysis was retained by a UK energy company to provide an analysis of bidding behaviour by renewable generators in the balancing market in the presence of Contracts for Difference (CfDs). The bidding behaviour of CfD supported renewable generators in the market has been under review by the UK’s energy regulator, Ofgem, for potential breaches of competition rules.
A nonconfidential version of our report is available here: CfDs and the Balancing Mechanism