Contracts for Difference: An explanation of the methodology used to set administrative CFD strike prices for the next CFD allocation round

This sets out the methodology used to determine the strike prices for the second CFD allocation round.


Strike price methodology

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This paper explains the methodology for determining the Contract for Difference (CFD) administrative strike prices (ASPs) for the next pot 2 (less established technologies) allocation round. The auction is held on a pay-as-clear basis, subject to no project receiving a higher strike price than its technology-specific ASP. The ASPs therefore act to cap the support rate available to each technology.

Published 9 November 2016