Two-way Contracts for Difference for Renewable Energy Projects in the EU: An Economic and Legal Analysis

This master thesis deals with the introduction of two-way contracts for difference (CfDs) in the renewable energy sector, which must be introduced in all EU member states in a few years as part of the current EU electricity market reform. The aim and purpose of the introduction of bilateral CfDs is to avoid or at least limit so-called windfall profits for various low-carbon power generation technologies (including nuclear energy in addition to renewable energy), as occurred in the course of the electricity market crisis in 2022 and 2023. The analysis of the CfD instrument is interdisciplinary in that the legal analysis is preceded by an energy economic analysis. This shows, among other things, that the intended reform goal of revenue capping can be achieved through CfDs, but that their exact effect depends heavily on the specific design of the instrument. The EU reform leaves the member states a great deal of room for manoeuvre. As a result, a final legal assessment of conformity with EU law and German constitutional and energy law is not yet possible. However, a legally compliant implementation in Germany can certainly be expected if the German legislator closely follows the EU requirements.