Contracts for difference are a small part of the wholesale market now, but soon they will be affecting market behaviour, argues Mark Meyrick​

Under the government’s Electricity Market Reform, its replacement for the Renewable Obligation is now upon us. The CfD, or Contract for Difference, now means there is about 6.4GW of power coming onto the grid, mostly between now and 2021. This is likely to have a profound effect on the wholesale market.